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Glossary · Payroll & compliance

Joint employer

When two companies, like an agency and its client, can both be treated as a worker's employer under the law.

Definition

A joint employer situation exists when two businesses share or co-determine a worker's essential terms of employment, such as hiring, pay, scheduling or supervision. In staffing, the agency and the client can both be responsible under some laws. Wage and hour rules, safety duties and labor law each use their own tests, and the federal standards have shifted over the years. In practice, OSHA treats safety as a shared duty: the client controls the worksite, while the agency trains and follows up.

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This definition is general information, not legal, tax or financial advice. Rules vary by state and change over time.

Payroll & compliance

More terms on this topic.

10DLCThe registration system U.S. carriers use for business text messages sent from ordinary 10-digit phone numbers.
ABC testA strict three-part test some states use to decide whether a worker is an employee or a contractor.
Adverse actionA decision not to hire, place or keep someone based in whole or part on a background check report.
Background checkA report on a candidate's history, such as criminal records or driving record, used in hiring decisions.
Co-employmentAn arrangement where two companies share employer duties for the same worker on purpose, as in staffing or a PEO.
E-VerifyA federal online system that checks Form I-9 information against government records.
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