“Situation in which two legally distinct employers have employer-employee relationship with the same person.”
The below distinctions have been determined as best practice in the defense of co-employment cases. Consumers of contingent labor have risks in many current behaviors as it relates to contractor pay and performance discussion(s) with individual contractors.
Case Law (Vizcaino v. Microsoft) : In 1993 long term Microsoft independent contractors argued that they were “common law” employees of Microsoft, because there was no discernable difference in how they were managed or worked and were entitled to the same benefits of a Microsoft FTE. Microsoft paid $93m to settle the case. The industry impact was substantial, and large enterprises implemented programs to change their behavior in how they managed contingent labor. New cases continue today.
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