Blogs

Joint employers take note: the Labor Commissioner cited three California temporary staffing agencies and a processing plant for violating California’s COVID-19 Supplemental Paid Sick Leave (SPSL) law after they failed to inform 3,476 temporary workers of their right to take SPSL. These citations demonstrate the importance of understanding not only the SPSL requirements but also the concept of joint employment.

The SPSL requires that covered employers provide employees sufficient time off for specific COVID-19 reasons under the law. Employees are also entitled to be notified of their rights under the law. Covered employers who violate SPSL can be subject to significant penalties. In California, the analysis for joint employment focuses on an employer’s exercise of control over a worker’s hours, wages, or working conditions. Generally, an employer that uses a temporary staffing agency to supplement its workforce will be considered a joint employer and thus, share liability for the staffing agency’s labor violations. Specifically, California Labor Code 2810.3 states that a “client employer shall share with a labor contractor all civil legal responsibility and civil liability for all workers supplied by that labor contractor” for wage and hour violations. California’s COVID-19 SPSL law falls under wage and hour law.

The Labor Commissioner began investigating the processing plant in 2020 after COVID-19 outbreaks were reported at the worksite. As part of its investigation, the Labor Commissioner audited payroll records, which determined that the staffing agencies hired temporary staff to fill in for its permanent workers affected by the COVID-19 outbreaks at the processing plant. The Labor Commissioner found that the staffing companies failed to notify the temporary workers of their rights to take SPSL. As a joint employer, the processing plant was also found liable.

The Labor Commissioner issued penalties in the amount of $3,783,800, payable to the 3,476 affected workers. Given the significant penalties associated with violating the SPSL law, covered employers should understand the law’s requirements and work with legal counsel to ensure compliance. Employers Council members can reach out to our California Legal Services team at CAInfo@employerscouncil.org for assistance with any questions about California’s COVID-19 Supplemental Paid Sick Leave law.