Or. Admin. R. 839-007-0005 - Jointly Employed Employees
(1)
All joint employers are responsible, both individually and jointly, for
ensuring compliance with the provisions of ORS
653.601 to
653.661 and these rules. The
bureau will be guided by joint employment standards found in Title 29, Code of
Federal Regulations, Part 791, Section 2 and Part 825, Section 106.
(2) A determination of whether or not a joint
employment relationship exists is not determined by the application of any
single criterion, but rather the entire relationship is to be viewed in its
totality.
(3) A type of company
that is often called a Professional Employer Organization (PEO) contracts with
client employers to perform administrative functions such as payroll, benefits,
regulatory paperwork, and updating employment policies. The determination of
whether a PEO is a joint employer also turns on the economic realities of the
situation and must be based upon all the facts and circumstances. A PEO does
not enter into a joint employment relationship with the employees of its client
companies when it merely performs such administrative functions. On the other
hand, if in a particular fact situation, a PEO has the right to hire, fire,
assign, or direct and control the client's employees, or benefits from the work
that the employees perform, such rights may lead to a determination that the
PEO would be a joint employer with the client employer, depending upon the
facts and circumstances.
(4) In
joint employment relationships, the primary employer is responsible for giving
required notices to its employees, providing sick time leave and other leave
and maintenance of health benefits. Factors to be considered in determining
which employer is the primary employer include but are not limited to:
authority/responsibility to hire and fire, assign/place the employee, make
payroll, and provide employment benefits. For employees of temporary placement
agencies, for example, the placement agency most commonly would be the primary
employer. Where a PEO is a joint employer, the client employer most commonly
would be the primary employer.
Notes
Statutory/Other Authority: ORS 653.601-653.661 & ORS 651
Statutes/Other Implemented: ORS 653.601-653.661 & OL Ch. 520 (2017)
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