Joint employment (US Law)

[1] This Act defines joint employment in determining which business entity has the legal responsibility to provide an equivalent job for an employee returning from family or medical leave.

[2] On July 29, 2021, the U.S. Department of Labor has rescinded and removed the Joint Employer Rule (part 791 of title 29 of the Code of Federal Regulations) in its entirety and reserved.

In behalf of not causing any legal proceedings, the employers, should set out their responsibilities clearly in the agreement to avoid any uncertainty in the future and contract language is very important.

[16]The joint employers may find it easier to hire experts in some niche industries, people with specialist skills, or even replace their regular workforces.

Due to the fact that joint employment is more flexible for an employee to work with different practices in a given period, they can decide which job should be prioritised.

One potential risk is there could be confusion about the arrangement of an employee between two employers, so it is difficult to overcome these practical problems.

In some circumstances, if two employers have completely different terms and conditions such as work schedule and sick pay, the employees might disagree on them.

The joint employers also have to determine their responsibilities as well as manage the process and make decisions in any disciplinary situation.

A lot of large companies such as Walmart, DHL, have been prosecuted for unpaid overtime pay to the joint employer.