January 25, 2016

Labor Department Issues Guidance That Would Make More Employers Liable For Actions Of Contractors

Last Wednesday, the U.S. Labor Department (DOL) issued guidance pertaining to the federal government’s “joint employer” standard. 

As Connecting the Dots readers will remember, last summer the National Labor Relations Board (NLRB) issued its own interpretation of the standard. (Click here to see MSCI’s earlier explanation of the NLRB’s ruling.) 

Like the NLRB’s interpretation, the DOL’s standard could increase employers’ costs and their liability for workers who were not previously considered under their control. Indeed, as National Federation of Independent Business Senior Executive Counsel Beth Milito told The Wall Street Journal, the DOL guidance will “hurt large and small businesses’ flexibility to outsource functions that aren’t part of their main mission such as information technology or cleaning.” 

The full DOL guidance is available here and a National Law Review explanation is available here

MSCI is working with its partners at the Coalition for a Democratic Workplace to oppose both the NLRB “joint employer” ruling and the DOL guidance.