Joint Employment: Overview

by Practical Law Labor & Employment

A Practice Note providing an overview of the joint employment doctrine, under which an employer may be held liable for another entity's employees. This Practice Note discusses the risks of being deemed a joint employer, which often arises when using contractors, temporary staffing agencies, or Professional Employer Organizations (PEOs). It examines the complex and evolving tests used to determine joint employer status under key federal labor and employment laws, including the National Labor Relations Act (NLRA), the Fair Labor Standards Act (FLSA), Title VII of the Civil Rights Act of 1964, and the Family and Medical Leave Act (FMLA). This guidance explores the different standards applied by federal agencies, such as the National Labor Relations Board (NLRB), and the various tests used by the federal circuit courts. This Practice Note also addresses specific challenges for franchisors and offers best practices to help businesses assess and mitigate the significant legal risks associated with potential joint employer relationships. It addresses federal law, but is useful to employers in all states.