Governmental impediments to the employment of contingent workers

Journal of Labor Research

Volumn 17, Issue 4, 1996, Pages 595-612

  Dennard Jr , H Lane ^a  

^a NONE

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EID: 0040304686     PISSN: 01953613     EISSN: None     Source Type: Journal    
DOI: 10.1007/bf02685802     Document Type: Article

References (67)

1. Daily Lab. Rep. (BNA), No. 236, at AA-1 (Dec. 12, 1994).
2. Id.
3. Scott F. Cooper, The Expanding Use of the Contingent Workforce in the American Economy: New Opportunities and Dangers for Employers, 20 Employee Relations L.J. 525, 528 (1995).
4. H. Lane Dennard, Jr. and Herbert R. Northrup, Leased Employment: Character, Numbers and Labor Law Problems, 28 Ga. Law Rev. 683, 696 (1994) (1981-1994 figures); NATSS, "Temporary Help Employment Continues to Grow, but at Slower Pace Indicating Slower Economy," News Release (Sept. 22, 1995) (1995 figures).
5. H. Lane Dennard, Jr. and Herbert R. Northrup, Leased Employment: Character, Numbers and Labor Law Problems, 28 Ga. Law Rev. 683, 696 (1994) (1981-1994 figures); NATSS, "Temporary Help Employment Continues to Grow, but at Slower Pace Indicating Slower Economy," News Release (Sept. 22, 1995) (1995 figures).
6. This report is summarized in Daily Lab. Rep. (BNA) No. 161, at D-1 (Aug. 21, 1995).
7. The report on the survey is summarized in Daily Lab. Rep. (BNA), No. 180, at A-16 to 17 (Sept. 18, 1995).
8. Id. at A-16.
9. Labor Research Association, The American Labor Yearbook 1993, at 32-33 (Greg Tarpinian, ed., 1993).
10. Dennard and Northrup, supra note 4, at 692-93.
11. Daily Lab. Rep. (BNA), No. 194, at A-3 (Oct. 6, 1995).
12. Cooper, supra note 3, at 530.
13. Report and Recommendations of the Commission on the Future of Worker-Management Relations (Jan. 9, 1995), reported at Daily Lab. Rep. (BNA), No. 6, Special Supplement at 35 (Jan. 10, 1995).
14. Supra note 5.
15. In addition to the federal laws discussed in this article, the use of leased employees has significant ramifications under the Worker Adjustment and Retraining Notification Act (WARN), the Family and Medical Leave Act (FMLA), the Employee Retirement Income Security Act (ERISA), and other federal tax laws. For a discussion of many of these issues, see Dennard and Northrup, supra note 4. For a discussion of tax issues, see Cooper, supra note 3. Finally, employee benefits and tax issues are discussed in Janet Payton, "Employee Leasing: An Overview," 11 Corporate Counsel's Quarterly 1, at 12-19 (1995) (also citing other useful references that discuss benefits and tax issues).
16. The term "NLRA" includes the Wagner Act and subsequent amendments by the Taft Hartley Act and Landrum-Griffin Act. These statutes are codified at 29 U.S.C. §§ 141-188 (1988 & Supp. IV 1992). Title VII is codified at 42 U.S.C. § 2000e through 2000e-17 (1988 & Supp. IV 1992). The FLSA is codified, as amended, at 29 U.S.C. §§ 201-219 (1988 & Supp. IV 1992). OSHA is codified at 29 U.S.C. §§ 651-678 (1988 & Supp. IV 1992).
17. The ADEA is codified at 29 U.S.C. §§ 621-634 (1988 & Supp. IV 1992) and the ADA is codified at 42 U.S.C. § 12101 through 12213 (1988 & Supp. IV 1992).
18. Clinton's Ditch Coop. Co. v. NLRB, 778 F.2d 132, 137 (2d Cir. 1985) (quoting Browning-Ferris Industries, 691 F.2d 1117, 1122 (3rd Cir. 1982)).
19. W. (quoting NLRB v. Deena Artwear, Inc., 361 U.S. 398, 402 (1960)).
20. Browning-Ferris, supra note 17, at 1124.
21. See cases cited at n. 53 of Dennard and Northrup article, supra note 4.
22. See AT&T v. NLRB. 67 F.3d 466 (2nd Cir. 1995), 1995 U.S. App. LEXIS 27743 (reversing the Board's determination of joint employer status); see also Daily Lab. Rep. (BNA) No. 198, at A-1 (Oct. 13, 1995) (summarizing the Second Circuit's decision in AT&T).
23. See Dennard and Northrup, supra note 4.
24. 42 U.S.C. § 2000e(b) and (f).
25. EEOC v. Sage Realty Corp., 507 F. Supp. 599, 611 (S.D.N.Y. 1981).
26. Baranek v. Kelly, 630 F. Supp. 1107, 1113 (D.Mass. 1986).
27. Sage Realty, supra note 24.
28. Rivas v. Federacion de Asociaciones Pecuarias de Puerto Rico, 929 F.2d 814, 820 (1st Cir. 1991) (ADEA case).
29. 808 F. Supp. 500, 504 (E.D. Va. 1992).
30. Cobb, 673 F.2d 337, 340-41 (11th Cir. 1982).
31. Id. at 341.
32. 613 F.2d 826, 831-32 (D.C. Cir. 1979).
33. 29 U.S.C. § 203(d) and § 203(g).
34. See Joint Employer Relationship under Fair Labor Standards Act of 1938, 29 C.F.R. § 791.2(a) (1993).
35. See, e.g., Johns v. Stewart, 57 F.3d 1544, 1557 (10th Cir. 1995); Henthorn v. Department of Navy, 29 F.3d 682, 684 (D.C. Cir. 1994); Bartels v. Birmingham, 332 U.S. 126 (1947) (first announcing the test).
36. Sam Haul & Sons. Inc., 1980 OSHD (CCH ¶ 24,927 (1980)); MLB Indus., 1985 OSHD (CCH ¶ 27,408 (1985)).
37. See Dennard and Northrup, supra note 4, at 711 and n.116.
38. I.R.C. §§ 3102, 3301, 3402.
39. I.R.C. § 3111.
40. I.R.C. § 401 (a).
41. See Treas. Reg. §§ 31.3121(d)-1(c)(1), 31.3306(i)-1, 31.3401(c)-1; Rev. Rul. 87-41, 1987-1, C-B. 296. 41 Rev. Rul. 87-41, 1987-1 C.B. 296.
42. H.R. 582, 104th Cong., 1st Sess. (1995).
43. Supra, note 12, at 35.
44. Id. at 36.
45. Id.
46. 1993 TEX. GEN. LAWS 994; FLA. STAT. ANN. § 468.525 (West 1991); TENN. CODE ANN. §§ 62-31-102 to 62-31-209 (1990); OR. REV. STAT. §§ 656.850 to §§ 656.990 (1989); NEV. REV. STAT. §§ 616.254 et seq. (1995); N.M. STAT. ANN. §§ 59-A-2-9 (Michie 1995), 60-13A-1 et seq. (Michie 1994); S.C. CODE ANN. §§ 40-68-10 et seq. (Law. Co-op. 1995); ME. REV. STAT. ANN. tit. 32, §§ 14051 to 14058 (1988).
47. See Workmen's Compensation Act of 1897 (U.K.). The British legislation, which first used this key phrase, is recognized as the progenitor of workers' compensation laws in the United States. 48 MO. REV. STAT. § 287.282 (1992).
48. NEV. REV. STAT. § 616.2541 (1995).
49. Supra note 48.
50. See, e.g., O.C.G.A. § 34-9-8.
51. FLA. STAT. ANN. §§ 468.520 et seq. (West 1991); ME. REV. STAT. ANN. tit. 32, §§ 14051-14058 (West 1988); NEV. REV. STAT. § 616.254 et seq. (1995); N.H. REV. STAT. ANN. §§ 277.B:1 to 277-B:18 (1987); N.M. STAT. ANN. §§ 60-13A-1 to 60-13A-14 (Michie 1994); OR. REV. STAT. tit. 51, § 656.850 et seq. (1989); S.C. CODE ANN. § 40-68-10 to 40-68-180 (1995); TENN. CODE ANN. §§ 62-31-102 et seq., §§ 62-43-101 to 62-43-120 (1995 Supp.) (effective Jan. 1, 1996); TEX. LAB. CODE ANN. § 9104 et seq. (WEST 1993).
52. See, e.g., FLA. STAT. ANN. § 468.520(4) (West 1991).
53. OR. REV. STAT. § 656.850 (1989).
54. In Florida, all leasing agencies applying for an initial license are required to have a minimum net worth of $50,000 and to show that they are morally fit. FLA. STAT. ANN. §§ 468.523. 468.525 (West 1991). The Florida statute has a "sunset" date of October 1, 2001, when it shall be automatically repealed. § 468.525, supra. The requirements in Texas are as follows: Number of Employees Minimum Net Worth < 250 $ 50,000 > 250 and < 750 75,000 >750 100,000 1993 TEX. GEN. LAWS 994. In Utah, all leasing agencies must show that they are financially responsible. Leasing agencies commencing or reentering the business must show a minimum $50,000 net worth and "good moral character." UTAH CODE ANN. §§ 58-59-302, 58-59-303, § 58-59-501(1) (1994).
55. UTAH CODE ANN. § 58-59-304 (1994).
56. 1993 TEX. GEN. LAWS 994; FLA. STAT. ANN. § 468.525 (West 1991). See also ME. REV. STAT. ANN. tit. 32, § 14055 (West 1988) (providing that when benefits are given to leased employees by agency, agency is deemed leased employees' employer under state benefit laws); UTAH CODE ANN. § 58-59-501(2) (1994) (making it third-degree felony for leasing agency to offer self-funded medical plan not meeting certain federal requirements and not maintained exclusively for benefit of plan participants). Some or all of these requirements relating to benefits may be preempted by ERISA. See, e.g., District of Columbia v. Greater Washington Bd. of Trade, 113 S.Ct. 580 (1992); TENN. CODE ANN. § 62-31-203 (1993).
57. 1993 TEX. GEN LAWS 994; FLA. STAT. ANN. § 468.525 (West 1991).
58. Leased employees, however, are not deemed to be employees of the leasing agencies for these coverages unless the employees are specifically referred to in the applicable insurance contract or bond. ME. REV. STAT. ANN. tit. 32, § 14055(4) (West 1988).
59. See, e.g., ILL. ANN. STAT. ch. 515, para. 11 (Smith-Hurd 1993).
60. See, e.g., KAN. STAT. ANN. § 44-401 (1993); but see ILL. ANN. STAT. ch. 151, para. 11 (Smith-Hurd 1993) where such firms are not specifically excluded. Oklahoma law defines temporary as less than 60 days. OK. STAT. ANN. tit. 40, § 52 (West 1986).
61. See, e.g., N.C. GEN. STAT. § 95-47.1 (1994).
62. See, e.g., MD. ANN. CODE art. 8, § 507 (1990); R.I. GEN. LAWS § 23-17.7 (1989).
63. R.I. GEN. LAWS § 23-17.7-2 (1989).
64. DEL. CODE ANN. tit. 19, § 3327 (1994 Supp.).
65. N.H. REV. STAT. ANN. § 277-B:9 (1987).
66. MINN. STAT. § 268.163 (1992).
67. Supra note 6.