California employers who work closely with one or more other
employers in a single business enterprise need to be aware of a
significant change in a California law that could have major
liability repercussions.
On July 1, 2015, new regulations interpreting the California
Family Rights Act (CFRA) took effect. One of the most significant
changes included in the regulations is the new, broad definition of
the concept of a "joint employer" for liability purposes
(Title 2 of the California Code of Regulations, §
11087(d)(3)).
The federal Family and Medical Leave Act (FMLA) regulations
address joint employer coverage as follows:
- Where two or more businesses exercise
some control over the work or working conditions of the employee,
the businesses may be joint employers under FMLA. Joint employers
may be separate and distinct entities with separate owners,
managers, and facilities. Where the employee performs work which
simultaneously benefits two or more employers,
