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W&D Weekly
March 16, 2016
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Fensterbau Opens in Nuremberg

Fensterbau Frontale, the international trade show that is held every two years, opened its doors on March 16. Window and door professionals from around the world were given an opportunity to gain a unique overview of the market in 11 halls at the Exhibition Centre Nuremberg. Read More

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The Talk

By Paul R. Gary

We addressed the joint employer issue some months ago. Since then, the Wage and Hour Division of the U.S. Dept. of Labor issued a formal Administrator’s Interpretation of “joint employment” under the Fair Labor Standards Act. This AI 2016-1 provides guidance for determining whether a horizontal or vertical joint employment exists. We offer the basic information below, but recommend you read AI 2016-1.

“Horizontal joint employment” occurs where a worker is an employee at two companies that can both be responsible for employer obligations to the employee. The focus here is on the relationship between the two employers and any relevant facts of a particular case.

“Vertical joint employment” can occur where an employee of Company A is economically dependent on Company B, which is also legally an employer and which dominates the overall economic enterprise. The focus here is on the “economic realities,” which is the emerging test that considers the facts of the working relationship between the employee and potential joint employer.

There is nothing wrong with joint employment; it is permitted under the FLSA. However, where a joint employment situation exists, the hours worked by the employee for both employers are added together and considered one for purposes of overtime. Also, both employers are jointly and severally responsible for compliance with the other elements of FLSA.

Again, a careful reading of the WHD Administrator’s Interpretation No. 2016-1 is recommended.

What are your thoughts? Take the poll, leave a comment, or send an email

Do any of your employees or contractors fall under the vertical or horizontal joint employment status?
Our company has a vertical joint employment situation with one or more employees
Our company has a horizontal joint employment status with one or more employees
We have joint employment status but not sure which type
Maybe, but I don't know which joint employment status fits our situation
All of our employees work solely for our company

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