The Department of Labor's latest proposal on joint employer status has sparked interest among truckers and industry stakeholders.
Given the level of subcontracting that goes on in trucking, it's a proposal that has the potential to become an issue when a driver-related issue becomes the subject of an enforcement action by the Wage & Hour division.
The proposed rule looks at both vertical joint employer relationships, which would involve subcontracting, like what goes on in trucking, or a horizontal employer relationship.
A horizontal employment relationship is one where an employee works separate hours for two (or more) employers in the same workweek that are sufficiently associated with each other with respect to the employment of the employee.
The proposed rule's test for vertical joint employment is of most relevance for trucking companies, as it deals with the issue of whether a motor carrier is the joint employer of its employee drivers.
If a company is found to be a joint employer with another that it thought it was just contracting with, it could face significant consequences, including increased liability for wages and damages.
Joint employer status carries real consequences, including jointly and severally liable employers for wages, overtime, damages, and penalties owed to employees.
The proposed rule's four-factor test aims to clarify the nature of an employer's structure, but its impact on trucking companies remains uncertain.
Trucking companies must carefully review the proposed rule and consider how it may affect their operations and liability.
The proposed rule's structure and implications for trucking companies are being closely watched by s.
