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Joint Employment Agreement Template for United States

A Joint Employment Agreement is a legally binding document used in the United States that establishes and governs the relationship between two or more employers who share control and supervision over an employee's work. This agreement outlines the division of responsibilities between employers, including compensation, benefits administration, workplace safety compliance, and liability allocation. It ensures compliance with federal and state employment laws while clearly defining the roles and obligations of all parties involved.

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What is a Joint Employment Agreement?

The Joint Employment Agreement addresses the increasingly common situation where an employee performs work that simultaneously benefits two or more employers. This arrangement requires careful structuring to ensure compliance with U.S. federal and state employment laws, including the Fair Labor Standards Act, workers' compensation requirements, and various labor regulations. The agreement defines primary and secondary employer responsibilities, establishes clear communication channels, and protects all parties' interests while maintaining operational efficiency. It's particularly crucial when employees work across different business entities, shared service arrangements, or in professional employer organization (PEO) relationships.

What sections should be included in a Joint Employment Agreement?

1. Parties: Identifies all employers involved in the joint employment relationship and the employee

2. Background: Explains the context of the joint employment arrangement and why it's being established

3. Definitions: Defines key terms used throughout the agreement, including 'Primary Employer', 'Secondary Employer', etc.

4. Employment Terms: Specifies position, duties, start date, and employment status

5. Division of Employer Responsibilities: Clearly outlines which employer is responsible for what aspects of employment

6. Compensation and Benefits: Details salary, benefits, and which employer will handle payments/administration

7. Work Schedule and Location: Specifies working hours and location arrangements between employers

8. Compliance and Liability: Addresses joint compliance with employment laws and allocation of liability

9. Termination: Conditions and procedures for ending the employment relationship

What sections are optional to include in a Joint Employment Agreement?

1. Intellectual Property Rights: Addresses ownership of IP created during employment - use when employee will be creating intellectual property

2. Non-Compete Provisions: Restrictions on post-employment competition - use when protecting business interests is crucial

3. International Work Provisions: Specific terms for cross-border employment - use when employment involves multiple countries

4. Training and Development: Specifies responsibility for employee training - use when significant training investment is involved

5. Confidentiality Provisions: Protection of confidential information - use when employee has access to sensitive information

What schedules should be included in a Joint Employment Agreement?

1. Schedule A - Job Description: Detailed description of role and responsibilities

2. Schedule B - Compensation Structure: Detailed breakdown of salary, benefits, and payment responsibilities

3. Schedule C - Employee Handbook Acknowledgment: Reference to applicable employer handbooks and policies

4. Schedule D - Health and Safety Protocols: Specific safety requirements and responsible parties

5. Schedule E - Cost Sharing Agreement: Breakdown of how employment costs are shared between employers

6. Schedule F - Reporting Structure: Organizational chart showing reporting lines to both employers

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

United States

Publisher

Ƶ

Cost

Free to use

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