The U.S. Department of Labor recently filed a lawsuit alleging that an auto manufacturer is jointly liable for child labor violations committed by one of its suppliers and the supplier’s staffing company. In its complaint, DOL alleges that the auto manufacturer is so interrelated with its supplier that it is an integrated employer for liability purposes under the Fair Labor Standards Act (FLSA). In the alternative, DOL argues that the manufacturer, supplier, and staffing company are collectively joint employers and thus jointly liable.
DOL’s stance in Su v. Hyundai Motor Manufacturing Alabama, filed May 30, 2024, in the U.S. District Court for the Middle District of Alabama, suggests that DOL is returning to the controversial fissured workplace theory that it supported during the Obama administration. The fissured workplace approach holds businesses responsible for the labor standards of companies with whom they interact, such as subcontractors and franchisees.
Members of the Center for Workplace Compliance (CWC), our affiliated nonprofit membership association, can read more here.