Statutory Joint Liability: CA Labor Code Section 2810.3
- If employers with 25+ employees use five or more workers at a given time from a third party, then both the employer & third party may be responsible for the payment of wages to that worker
- Factors that the courts consider are whether:
(1) Workers are provided to perform labor within the hiring entity’s usual course of business;
(2) Workers are exempt or non-exempt; and
(3) Contractor is a bona fide nonprofit community
Common Law Joint Liability
- The Common Law test for join employer rela- tionship focuses on the control that a third party business exerts over the hiring employer’s worker
- Courts have weighed in on whether a third- party joint employer has power/authority to:
– negotiate & set the workers
-set employee schedules
– train/supervise workers
-instruct employees when to take breaks
- The courts have found that a well drafted employment contract with power & authority to the em- ployers, will preclude a third-party employer from exerting control & authority.
Labor Code Section 558.l(a) states that a person acting on behalf of an employer who violates or causes to be violated any wage order governing minimum wages and hours worked may be personally liable for the violations
- The code covers:
- Payroll issues
- Incorrect wage statements
- Improperly issued final pay
- Failure to reimburse employment related expenses
- It is important for owners & managers to understand the wage & hour obligations to avoid personal liability.
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