Joint Employment Relationships: Best Practices and Risks

Summary

This practice note identifies certain preliminary considerations when analyzing a potential joint employer relationship and provides an overview of the tests federal courts and federal agencies use to evaluate joint employment relationships under various federal statutes including Title VII of the Civil Rights Act of 1964 (Title VII), the Americans with Disabilities Act of 1990 (ADA), the Age Discrimination in Employment Act of 1967 (ADEA), the Fair Labor Standards Act of 1938 (FLSA), the Family Medical Leave Act of 1993 (FMLA), the National Labor Relations Act of 1935 (NLRA), and the Occupational Safety and Health Act of 1970 (OSH Act). Under a joint employment relationship, separate entities have enough control over the same employees so that a court or administrative agency would find the employers to be jointly liable. This practice note gives examples of the risks your client may face if found to be a joint employer and offers practical guidance for avoiding such a finding.