Illegal Worker Dispatch
2018.10.01.
Our client, a utility company, asked us to review the legal risk that its relationships with certain outside contractors could be recharacterized as manpower-supply relationships. Recharacterization of a service-provider relationship as a manpower-supply relationship results in significant adverse legal repercussions, including a right for the workers to demand direct employment, and potential civil and criminal liability.
We conducted an in-depth review for our client, using a system developed by our Labor and Employment Practice to quantify the risk of such relationships. That system uses a matrix—developed through extensive research into case precedents and administrative guidance—from which we generate a risk score for each relationship using the answers to many questions about their nature and structure.
Using the findings from our review, we advised the client on how best to reduce its legal risk while still achieving its desired business ends.
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