A legal finding where both a subcontractor and a client company are considered employers of the same field workers. This exposes subcontractors to shared liability for wages, overtime, and labour standards violations. Regulators in oil and gas and construction actively scrutinise these arrangements.
Vertical Joint Employment
Related Terms
Field-to-Office Ratio
WorkforceThe number of field workers supported by each administrative/office employee. A ratio of 10:1 is common for paper-based operations; digitized operations often achieve 30:1 to 40:1.
Floater
WorkforceA skilled tradesperson or technician not assigned to a fixed crew or project, deployed where needed on short notice. Subcontractors often bill floaters at a premium rate due to their flexibility and quick availability.
Geofencing
WorkforceA virtual boundary set around a job site that triggers automatic alerts when workers or equipment enter or leave. Subcontractors use it to verify on-site attendance, automate timekeeping, and support accurate billing. It also helps clients confirm crew deployment without manual check-ins.
Wage Theft
WorkforceWhen a client or prime contractor withholds earned pay from field workers or subcontractors through unpaid overtime, illegal deductions, or misclassified labour. It exposes subcontractors to legal liability if it occurs within their own crew management. Provincial labour standards apply regardless of contract wording.
Spare Capacity
WorkforceThe portion of a subcontractor's available workforce, equipment, or service hours that is not currently committed to active contracts, representing untapped revenue potential that can be offered to clients on short notice or used to absorb surge demand without turning down work.
Horizontal Joint Employment
WorkforceOccurs when two unrelated companies — such as a labour agency and a subcontractor — are considered co-employers of the same worker. Both parties may share legal responsibility for wages, overtime, and labour standards compliance. Field service firms must understand this to avoid unexpected liability for workers hired through third-party staffing arrangements.
Latest Workforce News
DOL Proposes Unified Joint Employer Standard Under FLSA and Other Federal Laws
The U.S. Department of Labor has proposed a new rule to create a single nationwide standard for joint employer status under the Fair Labor Standards Act, the Family and Medical Leave Act, and other federal laws. The move aims to simplify compliance for businesses that rely on layered workforce arrangements.
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Labor Secretary Lori Chavez-DeRemer resigned April 20 amid an inspector general investigation, putting Deputy Secretary Keith Sonderling in charge of OSHA enforcement, Davis-Bacon oversight, and apprenticeship policy.
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Thinking about moving from field work to an office role? This guide covers how your field experience translates into technical and operations positions, what the transition actually looks like, and the trade-offs most people do not talk about until it is too late.
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Promoting your best hand to foreman is one of the most important decisions a subcontractor makes. Get it wrong and you lose two people: a skilled producer and a failed supervisor. This guide covers how to identify the right candidates, make the transition, and build a leadership pipeline that does not gut your field capacity.
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