By: Chris M. Mason
“The Department of Labor (DOL) continues to make dramatic changes to what we know and understand of minimum wage and overtime requirements. This time, in January of 2016, the DOL’s Wage & Hour Division (WHD) issued an Administrator’s Interpretation (AI), AI No. 2016-1, providing guidance on the subject of joint employment under the Fair Labor Standards Act (FLSA) and the Migrant and Seasonal Agricultural Worker Protection Act (MSPA). The guidance in this AI signals potentially dramatic employer risks.
Today’s evolving workforce presents a plethora of staffing options not as routinely used in the past. Third-party staffing companies, management companies, professional employer organizations, and independent contractors all present a variety of staffing options for contemporary workplaces. Companies on both ends of this arrangement – those that lend and those that borrow workers – may be deemed joint employers, as this signaled by the WHD’s recent AI. ”
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