After a lengthy internal review, the Michigan Department of Labor and Economic Opportunity has determined that the state Paid Medical Leave Act that became effective March 29 last year does not cover employees assigned to staffing firm clients, although staffing agencies may provide the benefit voluntarily. In contrast, staffing agency internal employees are not excluded from coverage and thus are eligible for benefits. The ruling is set forth in a policy update that LEO will provide to interested parties upon request. The ruling confirms the position advocated by ASA in meetings with state regulators.
DOL Issues Final Joint Employer Rules, Acknowledging and Reflecting ASA Input (TEST FOR 1/13/20)
On Jan. 12, the U.S. Department of Labor issued final joint employer rules that acknowledge and reflect the American Staffing Association’s comments on proposed rules DOL issued in June 2019. ASA supported DOL’s proposed streamlined four-factor test for determining joint employer status but pointed out that DOL’s proposed joint employment example pertaining to staffing could be misinterpreted, thus frustrating DOL’s goal of providing greater clarity. The example provided that a client exercised control over a staffing firm’s temporary workers by, among other things, setting their hourly rate of pay. ASA noted that in most staffing arrangements, clients do not set temporary workers’ pay and urged DOL to revise the example. The final rules include a revised example, reflecting ASA comments, that focuses on clients’ supervision and control over temporary workers’ work, as well as their control over work schedules. DOL also included a new example to show when a staffing client will not be a joint employer. In that example, the staffing firm not only exclusively determines assigned workers’ pay and work schedules, it also supervises them through an on-site supervisor. The joint employer rules are available at dol.gov. (TEST FOR 1/13/20)