Indemnification Clauses Not Fool-Proof For Co-Employment Liability

Shielding your company from co-employer liability takes more than a contract clause. Courts look at the nature of a company’s relationship with an employee, meaning a firm is likely to be considered a joint employer no matter what it has specified in a contract with a staffing agency, contractor, or parent or subsidiary company. And federal anti-discrimination, family leave and wage and hour laws let the government overlook such clauses, too. Companies using workers provided by staffing agencies, contractors or from parent or subsidiary companies may want to apply the same precautions to them as to regular employees.