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Aug10

ODRISA

The owner of the business that I work for recently purchased another business in the same field. I am willing to let a few of my employees go work at the other business for extra hours, but wanted to know if this would fall under ODRISA? Or would this be like they have two different jobs and the fact that it is the same owner does not matter?

A few states have adopted legislation requiring employees to have at least one day off in every week, often referred to as a One Day Rest in Seven Act (ODRISA). Each state has its own regulatory details of the law. While some laws may clearly define who the responsible employer is, others don’t. So, it’s important to be familiar with the particular law in your state.

Generally, where joint employment exists, both employers, individually and jointly, are responsible to ensure compliance with applicable labor laws. Joint employment is when an employee has two or more technically separate but associated employers; or when one employer provides labor to another employer and the employees are economically dependent on both employers.

It sounds like your situation is more in line with when an employee has two or more technically separate but associated employers. In this scenario, joint employment exists when both employers benefit from the employee’s work and both employers are sufficiently related to each other.

Consider the degree of association between the employers. Are there overlapping executives, directors, or managers? Do the administrators of both companies often work with each other? Does one company have control or significant influence over the operations of the other company? Are clients or customers shared amongst the companies? Are employees considered to be a “pool” in which either company can select one to perform duties? Are support operations (i.e. HR/Payroll) intermingled? Will one manager be overseeing the employee’s performance at both companies? If there are two separate managers, will they work together to manage the employee in job roles? Will the employee perform duties related to both companies?

The more business operations and an employee’s duties are intertwined, the more likely a joint employment exists.

The criteria for determining joint employment may differ in each state. So, it’s important to be aware of the laws in your state. If the law is unclear or nonexistent, then you should consider contacting your local Department of Labor for guidance. Make sure to document the conversation for your records.

HTH!

This entry was posted on Thursday, August 10th, 2017 at 2:11 pm and is filed under
Labor Laws.
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