DOL Joint Employment Interpretation Letter Likely to Have Little Impact on Staffing Industry

Share

The U.S. Department of Labor Administrator’s interpretation on joint employment under the Fair Labor Standards Act released today is unlikely to impact the use of staffing services or the relations between staffing companies and their clients, according to Stephen Dwyer, American Staffing Association general counsel.

“Under prior court decisions and established legal precedent, staffing companies and clients already were held to be joint employers,” Dwyer said. “The Department of Labor’s interpretation of the Fair Labor Standards Act, therefore, should have little practical effect for the staffing industry and should not be of concern to staffing clients, as potential liability for temporary and contract employees is no greater—and in some cases is less—than liability for the client’s internal employees, and can be mitigated by clients.”

Clients can mitigate potential exposure by performing due diligence when selecting a staffing provider to confirm that the firm is knowledgeable about, and compliant with, wage and hour and all other applicable laws, Dwyer emphasized.

# # #

About the American Staffing Association

The American Staffing Association is the voice of the U.S. staffing, recruiting, and workforce solutions industry. ASA and its state affiliates advance the interests of the industry across all sectors through advocacy, research, education, and the promotion of high standards of legal, ethical, and professional practices. For more information about ASA, visit americanstaffing.net.


ASA Workforce MonitorMore than three-quarters of employed U.S. adults (79%) are satisfied with their employers’ pandemic-related return-to-work plans. Download the infographic »

Stay Up-to-Date

Get the latest Covid-19 info & resources for staffing companies.