Can a single employee serve two employers while working at just one job? Under California law, the answer is yes. When that happens, the employee works under a joint employment relationship.
Joint employer liability in California arises under both statutory law (Labor Code §238.5 & §2810.3) and common law, as established in Martinez v. Combs. Common triggers for joint employer liability include the use of staffing agencies, subcontractors, and franchise arrangements.
Labor Code §238.5 establishes joint liability for wage violations when businesses pay contractors to supply either property services or long-term care services. Think of a business that contracts to have its landscaping done, or a facility that houses the elderly and pays an outside service to provide long term medical care.
Under Labor Code §2810.3, businesses may be held jointly responsible for wage violations and workers’ compensation obligations, even if they do not directly employ or pay the worker. Potential liability for this code section applies to companies with 25 or more employees that utilize five or more contract workers.
Under Martinez, a business may be deemed an employer if it:
A. Exercises control over wages, hours, or working conditions.
B. Permits or suffers work to be performed for its benefit.
C. Establishes a common law employment relationship, which is assessed by factors such as control, provision of tools, skill required, work location, duration, payment method, and integration into the business.
Before Martinez, the California Supreme Court had generally defined an employer as an entity or individual that exercises control over an employee’s wages, hours, or working conditions, including the right to hire, fire, and supervise. In contrast, the Martinez test broadens the definition of “employer,” increasing the potential for multiple businesses to be held accountable for the same workplace laws.
Further, businesses that become employers under the Martinez test are not only potentially liable for wage & hour violations, but they also may find themselves liable for discrimination, harassment, retaliation, and whistleblower laws.
As bad as all that sounds, the California courts have established a common-sense defense: In general, joint employers are only liable for their own employment law violations and are not automatically on the hook for the other co-employer’s misconduct.
Based in San Diego, California the Employment Law Office of Ward Heinrichs represents both employers and employees in almost all areas of labor law. He and his firm litigate cases that have been filed in many different parts of California. Keep up with him at https://bestemploymentattorneysandiego.com/
