Story perspectives

Federal Shift: Service Workers May Be Clients' Employees

3/20/2025

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Summary

Story summary

Federal agencies are pushing to redefine employee classifications, potentially labeling service firm workers as clients' employees under labor laws. While this raises concerns for many organizations, joint employment can create a safety net, aligning risks and responsibilities. By establishing clear staffing agreements, both staffing firms and clients can shield themselves from liability, while the IRS continues to oversee common-law employer status.

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Story summary

Federal agencies are pushing to redefine employee classifications, potentially labeling service firm workers as clients' employees under labor laws. While this raises concerns for many organizations, joint employment can create a safety net, aligning risks and responsibilities. By establishing clear staffing agreements, both staffing firms and clients can shield themselves from liability, while the IRS continues to oversee common-law employer status.