20th Anniversary SAC Attorneys
Elite Lawyers
Lawyers of Distinction
Avvo Rating 10.0
Santa Clara County Bar Association
Association of American Trial Lawyers
Elite Lawyers Business James Cai 2017
Best Litigation Attorneys in San Jose
Expertise - Best Employment Lawyers in Santa Clara 2021
Expertise - Best Employment Lawyers in Santa Clara 2022

Dept. of Labor Wants More Companies Classified as Joint Employers

The average person’s work experience in America has changed dramatically over the past half-century. It used to be the case that a worker just out of college could get hired by a company and stay with that organization for most or all of his career. But for better and worse, these kinds of career-long employment opportunities rarely exist anymore.

Instead, the average American worker can expect to have numerous jobs throughout his career. And it is increasingly becoming the norm for workers to work for more than one employer at a time – either in the form of a second job or through a contracting scenario. This relationship can be beneficial for workers, but it can also be exploitative. The U.S. Department of Labor recently announced that it wants to crack down on companies taking the latter approach.

In Silicon Valley and elsewhere, companies are increasingly relying on outsourcing, subcontracting and temporary employment (such as through a staffing agency). It is expensive to hire and train a large, full-time staff – especially if your company’s work needs fluctuate over time. That’s one reason why these alternative employment relationships are attractive.

But the DOL believes that many companies are misusing these alternatives to:

  • Avoid paying overtime to workers
  • Avoid legal liability for employment law and workplace safety violations
  • Avoid the costs that come with hiring regular employees, including certain taxes and benefits

In an effort to crack down on this behavior, the DOL has issued guidance to help businesses more accurately classify certain employment relationships. Agency officials say that in many of the cases they have seen, companies and staffing agencies should have been considered joint employers, which would increase a company’s liability for any wrongdoing.

It is important to note that the new employment landscape can be confusing, even if companies have the best intentions. That being said, honest mistakes could nonetheless land your business in trouble with the Department of Labor or other regulatory agencies. In order to ensure that your business is in full compliance with employment and wage laws, you may want to seek the help of an experienced business law attorney.

Client Reviews
★★★★★
Mr. Cai Is a Diligent Attorney. My sister and I were defendants in a civil litigation case. We hired James Cai and his law firm, SAC Attorneys LLP. Mr. Cai is a diligent attorney and responded to our questions in a timely fashion. He and his staff were very helpful in keeping us informed of the proceedings of the case and in explaining each step. Mr. Cai is also very conscientious of fees and costs, and avoided unnecessary charges. The results of the Summary Adjudication sided with us. The Court Trial resulted in the “Final Statement of Decision” and “Judgment after Court Trial” overwhelmingly siding with us. Cynthia F.
★★★★★
I Am Truly Impressed. After spending a significant amount of time, money and efforts with my previous counsel at a larger law firm without getting meaningful results, I transferred my employment matter to SAC Attorneys LLP. The attorneys there were able to understand the complex situations of my case and put together an aggressive litigation strategy. We were able to file a compelling complaint within a week and forced the opposing party, which was represented by one of the largest law firms in California, to make a substantial settlement offer shortly thereafter. I am truly impressed by the no nonsense and results oriented approach by SAC Attorneys LLP attorneys. A job well done! X. Gao
★★★★★
They Took Time to Understand Our Technology. I am the founder of a bioinformatics start-up in the Silicon Valley and chose SAC Attorneys LLP as our corporate counsels. Their attorneys have great experience with high tech start-ups and were able to offer a highly competitive service plan while not sacrificing a bit of their quality of services. They took time to understand our technology and provided value added services by introducing investors and job candidates to us. We regard our attorneys at SAC Attorneys LLP not only as our legal advisors but also our venture partners. Dr. Pete S.