Posted on 16-Jun-08 by The Timekeeper

I’ve reported here before on some of the issues related to “joint employment” situations. That’s where a temp or a contractor is supposed to be an employee of the temp agency or consulting firm, but because you exercise control over when, where and how they work, you become a “joint employer” — and can be held liable for violations of wage and hour law, even if the violations were committed by the agency or consulting firm.

Now, according to an article on Law.com, it seems this “joint employment” is becoming a more popular tactic used by plaintiffs and their attorneys in wage and hour cases.

If you employ temps or contractors, it would be a really good idea to make sure you’ve got your bases covered to avoid becoming a “deep pocket” in somebody’s wage and hour lawsuit. Here are some suggestions from the Law.com article:

• Know who you’re doing business with.
• Make sure protections for you are written into the contract.
• Follow up promptly on any allegations of wage and hour violations on the part of your business partners.
• Limit your control over anyone working on your behalf who isn’t your direct employee.
• Especially if you’re in California, make sure your business partner has enough money on hand to pay their wage and hour liabilities (California Labor Code §2810).
• Make sure your insurance is sufficient and up-to-date.

A few simple precautions and an awareness of the potential issues can go a long way toward keeping you out of hot water.

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