Who Is Your Real Employer?

Why the Answer Matters

That question may sound simple, but the answer can have serious consequences. When wages go unpaid, meal or rest breaks are denied, or a worker is injured on the job, identifying the company, or companies, legally responsible can make the difference between recovering what you are owed and being left without a remedy.

California's Broad Definition of Employer

California law does not define "employer" as narrowly as many workers and businesses may assume. The Industrial Welfare Commission wage orders, which govern wages, hours, and working conditions across many industries, define an employer broadly. Under California law, an employer may include anyone who exercises control over a worker's wages, hours, or working conditions; permits or allows the person to work; or otherwise engages the worker under traditional employment principles.

The California Supreme Court recognized these broad definitions in Martinez v. Combs (2010) 49 Cal.4th 35. Because the definitions are written broadly and in the alternative, a worker may have more than one employer at the same time. In other words, the company that signs your paycheck may not be the only company responsible for your wages and working conditions.

Staffing Agencies and Joint Liability

This issue is especially important for workers placed through staffing agencies, temporary agencies, and labor contractors. California Labor Code section 2810.3 provides that a "client employer" - the business that obtains workers through a labor contractor to perform work within its usual course of business - may share civil legal responsibility with the labor contractor for the payment of wages and for securing valid workers' compensation coverage.

In plain terms, a company generally cannot avoid responsibility for unpaid wages simply by routing your hiring, scheduling, or paycheck through a separate staffing agency. This protection exists because some businesses have attempted to use intermediaries to distance themselves from wage-and-hour liability, even while controlling the work being performed.

Why Joint Liability Can Make a Difference

When two companies are jointly responsible, you may not be limited to pursuing only the staffing agency or contractor. A staffing agency may be difficult to locate, undercapitalized, or no longer operating, while the larger company that controlled your day-to-day work remains in business.

Signs You May Have More Than One Employer

There are several signs that you may have more than one employer. For example, you may have been hired or paid by a staffing agency but reported to supervisors at another company. You may have worn the uniform, badge, or branding of the company where you physically worked. That company may have set your schedule, assigned your tasks, controlled your workspace, trained you, disciplined you, or had the power to remove you from the jobsite.

You may also have been told that you were an "independent contractor," even though the company treated you like an employee in practice. Any of these circumstances can raise important questions about who is legally responsible for your pay, breaks, working conditions, and other employment rights under California law.

Talk to an Employment Attorney

If you believe you have not been paid everything you are owed, or if you are unsure who your real employer is, you do not have to figure it out alone. The Wheeler Law Firm represents California employees in wage-and-hour and joint-employer disputes, including workers placed through staffing agencies, temporary agencies, and labor contractors.

We can review your situation, identify every company that may be legally responsible, and help you understand your rights. Contact us today for a confidential consultation.

This blog post is provided for general informational purposes only and does not constitute legal advice. Reading this post does not create an attorney-client relationship. Employment laws are fact-specific and subject to change, and you should consult a qualified attorney regarding your particular situation.