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Pursuant to federal law, which controls in Alabama on this particular issue, employees are entitled to overtime pay if they work more than 40 hours a week for "joint employers," defined generally as two organizations involved in a common business purpose that are subject to common ownership or control.
Factors which courts will examine to determine the existence of a joint employment relationship include the following:
- Whether there is an arrangement between the employers to share the employee's services, such as by interchanging employees;
- Whether one employer is acting directly or indirectly in the interest of the other employer in relation to the employee;
- Whether the employers share control of the employee;
- Whether there is common ownership of the employers; and
- Whether there is common management of the employers.
No single factor is determinative and courts will generally look at the “economic realities” of the working relationship between the companies rather than follow technical legal rules to determine whether a joint employment relationship actually exists.
To read more about the application of these principles, I would suggest taking a look at the following 7th Circuit Federal Appeals Court opinion: https://bulk.resource.org/courts.gov/c/F2/787/787.F2d.1205.85-1711.html
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