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The Labor Market Ministry proposes joint employer audits



The US Department of Labor on Monday announced a proposal to "review and clarify" the issue of joint employers.

An employer lawyer described it as a "solid proposition".

The department announced in 2017 that it withdrew the Obama administration's joint employment and independent entrepreneurial guides, which extended the definition of employees and is described as a welcome relief for employers.

DOL said in a statement that its proposal "would ensure that employers and joint employers clearly understand their responsibility to pay at least the federal minimum wage for all hours worked and overtime for all hours worked over 40 in a work week." [1

9659002] The statement said that the department proposes a clear four-factor test "based on well-founded precedent" that would consider whether the potential joint employer actually exercises the power to hire or fire the employee. monitor and control worker's work plans or terms of employment determine employee tax rate and payment method

Minister of Labor Alexander Acosta said in his statement that "the proposal will reduce uncertainty about the status of the joint employer and clarify for workers responsible for their employment protection".

Tammy D. McCutchen, a principal with the Littler Mendelson PC in Washington, said: "It is a solid proposition that balances the interests of employers and workers and goes back to what the law has been for many years, even in California."

                    


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