Clear Rules for Employers: Who is Responsible for Workers?
This act clarifies when two or more companies are considered joint employers. It means a company will only be responsible for another company's employees if it directly and significantly controls their employment, such as hiring, firing, or setting pay. This aims to reduce legal uncertainty for small businesses.
Key points
The act establishes clear criteria for when companies are considered joint employers, affecting their legal responsibilities.
A company will only be deemed a joint employer if it directly controls key aspects of employment, such as pay, work schedules, or discipline.
These changes aim to simplify business operations and reduce legal risks for entrepreneurs.
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