Understanding the definition of an employer is crucial when it comes to labor laws because it determines who is responsible for ensuring workers receive fair wages and proper working conditions. California law provides a broad interpretation of what constitutes an employer, expanding beyond what employers say or even agree to with workers.
According to California’s Wage Orders, an employer is anyone who directly or indirectly hires any other person and employs or exercises control over wages, hours, or working conditions of any person, even if the employer acts through an agent or another person to manage workers. If an entity or someone has control over how and when a worker performs their job, they may legally be considered an employer.
California law also recognizes the concept of joint employment, where two separate entities may both be responsible for wages and working conditions. This often applies in situations involving staffing agencies providing temporary workers and subcontracting arrangements in industries like construction or janitorial services. If multiple employers exercise control over a worker, they may be jointly liable for any labor law violations.
(See Link(s): Labor Code section 2810.3 and Wage Order 4-2001 section 2)