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Who’s Your Boss?

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Today, it is increasingly common for companies to contract with outside firms for many functions that would previously have been taken care of by traditional payroll employees. A law firm, for example, might hire custodial and building security services from contractors or a staffing firm.

Who do those custodians and security guards work for? On the one hand, they are paid by the staffing firm. At the same time, the law firm determines their schedules, the quality standards they need to meet, and the way they do their jobs. If they are owed overtime and don’t get it, who is legally responsible?

A similar situation exists with franchises. Does the cashier at a local,........

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