Home-based care providers in 2023 should stay on top of regulatory and compliance changes to federal joint employment laws.
In the eyes of the Fair Labor Standards Act and the National Labor Relations Board (NLRB), “joint employment” means working for two or more companies, one that is responsible for their W2s and compensation and a secondary that also benefits from their services. This includes workers from staffing agencies and franchisors, among others.
Joint employment laws are particularly relevant to home-based care, Angelo Spinola — the co-chair of the home health and home care industry group at the law firm Polsinelli — said Thursday on a WellSky webinar.
“If joint employment exists, then there is joint liability,” Spinola said. “That means that both entities, or however many entities there are that are deemed joint employers, are considered as though they are one entity for liability purposes. It has significant repercussions in our industry. In franchisor relationships, it’s a very, very common issue.”
A common scenario in home care, Spinola said, is that an owner of two independently incorporated businesses deploys employees across them both, even though they have and have separate payrolls.
That owner may believe that they’re not a joint employer because they are in fact separate entities.
However, if that owner is coordinating the work back and forth between the two entities, the federal government may consider them a joint employer under FLSA laws.
“Let’s...
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