Labor department issues clarification on employer of temporary workers

Labor department issues clarification on employer of temporary workers

The Department of Labor have issued on Sunday a final rule which has clarified the situations when a particular worker has been employed by over one company. This is an issue which affects the businesses of franchises like McDonald’s and the firms which have outsourced their services like maintenance and cleaning.

The rile which had been proposed in the last spring is going to replace the policy of Obama policy which had potentially made a lot more of the businesses liable for the failures by contractors or franchisees for paying minimum wages or overtime.

The issue has taken a lot more importance in the last few years as a lot of people in America are working for the franchises, contractors and firms temporarily. By a few estimates, close to 14 million of the Americans are in these alternative arrangements of work.

This latest rule that is going to take an effect on the 16th of March provides a four-pronged test for determining if a company becomes a joint employer. These tests are if it can hire or fire a particular employee and if it supervises the work schedule of the employee and if it is setting their pay and maintaining the records of the employees.

Not all of the tests are needed to be complied with for the establishment of the business as an employer nor does the model of the business which is followed by the company for determining if it is an employer as per the Labor Department.

The department has also said that it is furthering the efforts of Donald Trump to address issues which hinder the economy and stop it from growing faster.


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