The
Department of Labor has issued their enforcement rules for joint employment status of contract employees as part of their enhanced Fair Labor Standards Act (FSLA) enforcement in industries where misclassification has become rampant as companies move to avoid paying overtime, benefits and unemployment insurance.
The rules define both “Horizontal and Vertical” joint employment conditions, and these definitions are being used as guidelines for legal cases that are in the courts today. The Administrator’s Interpretation No.2016-1 spells out the requirements for the aggregation of hours, definitions and applicability for enforcement.
Anyone in the construction industry in this low bid and worker shortage environment had better take a really close look at the rules in this interpretation, especially if you are using third parties for staffing on your projects.
