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Joint Employment: Horizontal/Vertical and the Law

The Department of Labor (DOL) thinks joint employer relationships have become murky and tenuous for employees and is stepping up its enforcement efforts to protect employees. Specifically, the DOL is looking at joint employment in two ways: horizontal and vertical. Horizontal employment involves, for example, a cook who may work at two restaurants owned by the same employer or a nurse who works for two medical groups with the same owner. Vertical employment involves subcontractors who are hired by a staffing agency but report to the supervisor at the contracted company. Nemeth Law’s Terry Bonnette looks at how both forms of joint employment can impact employee pay. Hint to employers: it’s going to cost you.

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