The Board has reinstated the prior test for joint employment that requires actual, direct, and immediate control and rejected the standard allowing for reserved or indirect control.
While enactment remains far off, Congress has taken a significant step toward overturning the NLRB’s Browning-Ferris decision with this new bill.
As the concept of joint employment continues to evolve at the federal level, employers must fully consider direct, indirect and potential control.
The U.S. Department of Labor’s Wage & Hour Division (WHD) released new guidelines in early 2016 that further expand the definitions of both vertical and horizontal joint employment.
“A corporation with no employees owns a corporation with employees. If the corporation with no employees exercises some control over the corporation with employees, it also may be the employer of the employees of the corporation it owns.” That was the holding from the California Court of Appeal in Castaneda v. Ensign Group, Inc. (Cal.
In a textbook case on the dangers of operating an enterprise with integrated labor operations, the U.S. Court of Appeals for the Second Circuit recently affirmed a jury verdict against two defendants in a sexual harassment case brought by the Equal Employment Opportunity Commission on behalf of a group of female employees who worked for a franchisee. The employees alleged that they had been verbally and physically harassed by male managers and co-workers at the defendant’s franchise location...