Joint-Employer Liability

The Relationship Talk: DOL Issues New Rules on Joint Employer StatusWhen do your business relationships make you a joint employer? Fortunately, the DOL recently published a Notice of Proposed Rulemaking with changes to regulations regarding when two or more entities should be treated as “joint employers” under the FLSA. This will help answer the question of when you and the business partner share legal responsibility

McDonald’s Fries Franchise Workers’ Claims, Lands Whopper of a Ruling for FranchisorsIn an important wage-and-hour decision for franchisors, Salazar, et al. v. the McDonald’s Corp., et al., the Ninth Circuit Court of Appeals ruled that employees of one of the hamburger giant’s California-based franchisees were not jointly employed by McDonald’s Corp. and thus the franchisor, McDonald’s Corp., was not liable to the employees under California

We’ve posted on this topic several times before but the battle between independent contractors and employees continues.

Here’s a brief refresher on the basics of why proper classification of employees as independent contractors or employees matters:

  • Employees (not independent contractors) are entitled to workers’ compensation and unemployment benefits.
  • Employees (not independent contractors) have taxes withheld