Q: We use a staffing agency to provide workers during busy times throughout the year. Even though we do not directly hire these employees, I am wondering if we can be held responsible in case one of them files a claim for unpaid wages or gets hurt on the job. Should I be worried?
A: In California, there are at least two “joint employer” theories that could impose liability on businesses that contract with staffing agencies or other types of labor contractors. Under Labor Code 2810.3, certain employers may be jointly liable for wage and hour violations committed by “labor contractors,” such as staffing agencies. Generally, a business with 25 or more employees that contracts with a staffing agency will share all civil legal responsibility and civil liability for all non-exempt employees supplied by that staffing agency for:
• The payment of wages; and
• Failure to secure valid workers’ compensation coverage.
However, joint liability under this law does not apply to:
• A bona fide nonprofit, community-based organization that provides services to workers;
• A bona fide labor organization or apprenticeship program or hiring hall operated pursuant to a collective bargaining agreement;
• A motion picture payroll services company;
• In certain circumstances, a third party who is a party to an employee leasing arrangement;
• A homeowner for labor or services received at the home or the owner of a home-based business for labor or services received at the home;
• Workers who are...
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