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Recent Legal Developments Impact HR and Increase Employer Liability

First few Article Sentences

In early August, the Washington Supreme Court ruled that a joint employer may be liable for minimum wage law violations, regardless of the existence of a formal employment relationship with the affected employee. In Becerra v. Expert Janitorial, LLC, the plaintiffs were janitors that cleaned Fred Meyer stores for a subcontractor. The subcontractor classified the janitors as independent contractors to avoid paying minimum wage, overtime, and payroll taxes. The janitors sued the subcontractor, the main contractor, and Fred Meyer, claiming minimum wage and overtime violations. On appeal, the Supreme Court reversed the lower court, holding that the 13-part "economic reality" test was appropriate. Specifically, the Court held that a court should review independent contractor status using all 13 factors, not a select few. The decision brought Washington's minimum-wage jurisprudence in line with the 13-factor test used under federal law and makes it important for employers to ensure that their contractors and subcontractors follow minimum wage laws. Otherwise, employers may unwittingly be responsible for unpaid wages.


Lynch, Matt

 

Sebris Busto James

Law, Employment

January 1, 2015

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