By Marlisse Silver Sweeney and Jan Wolfe, From Corporate Counsel

Experts agree: the Department of Labor’s recent reinterpretation of “joint employment” is sure to mean increased liability for employers.

In case you missed the news, on Jan. 20 the administrator of the DOL’s Wage and Hour Division, David Weil, release a so-called administrator’s interpretation that outlined the agency’s position on how to define “joint employment” under the Fair Labor Standards Act and the Migrant and Seasonal Agricultural Worker Protection Act.

If two companies are deemed joint employers, they are both liable for wage-and-hour violations, employment discrimination and other causes of actions. Over the years, courts have created their own standards for determining whether joint employment liability exists. As Geoffrey DeBoskey and Brenna Woodley of Sidley Austin argue here, the guidance is a major departure from precedent, particularly with respect to so-called vertical joint employment, when an worker comes to a company through another company, such as a staffing agency.

The practical impact? More FLSA liability, according to Jason Shinn of Shinn Legal in Michigan. “The DOL’s administrator’s interpretation clearly signals that companies should be prepared for federal regulators seeking to hold more businesses accountable for people whose employment conditions they control to some degree, but do not claim as employees,” he writes in a blog post.

Christopher Parlo and Michael Puma of Morgan Lewis & Bockius agree. “This current guidance will, at a minimum, provide additional ammunition for those seeking to hold companies liable under the FLSA,” they write.

For more on this story go to: http://www.corpcounsel.com/id=1202748354389/Brace-Yourself-for-Joint-Employment-Liability#ixzz3ywIenptq