Who’s the Boss? The National Labor Relations Board’s new standard for determining joint employment may make community associations and management companies responsible for contractors’ pay, benefits and legal liability. Review your agreements with business partners now.

By Robert M. DeNichilo, Esq., and Greg Coulter, Esq.

Reprinted with permission from CAI’s Common Ground TM magazine, September/October 2016

whos_the_boss_250_250A BOARD MEMBER OR MANAGER tells a landscape company’s employee that he or she can only work during certain hours on particular days of the week or directs the employee to plant flowers in a specific way or location. Or, if a board believes the association isn’t receiving the level of service it expects, it may try to require its management company to fire a manager or replace him or her on the account. These situations aren’t all that uncommon.

Since the association is contracting for these services, the board (and maybe its manager) probably believes the contractor—and not the association—employs those individuals. However, under certain circumstances, the association could be found to be a “joint employer” of a contractor’s employees, which means a lot more fiscal responsibility and legal liability.

In a 2015 case known as Browning-Ferris Industries of California (# 32-RC-109684), the National Labor Relations Board (NLRB) overturned a long series of cases in the collective bargaining arena. With the decision, the circumstances expanded under which an entity that contracts for services can be found to be a joint employer. The decision could have far-reaching implications for both community associations and management companies, making them responsible for the employees of landscapers, painters, managers and others who provide services to an association.

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