This chapter explains the numerous legal questions that arise under the
common law and under the many employment statutes as a result of these practices.
Most of the various federal (and state) statutes contain no detailed definition
of the terms "employer" and "employee." Thus the job
of defining these terms has been left to the courts. Considerable authority
developed however under the common law and under the early statutes, particularly
the National Labor Relations Act and the Fair Labor Standards Act, both
passed in the 1930s. The definitions developed under those statutes have
been adopted by the courts in interpreting Title VII and the subsequently
enacted statutes. The net result is a broad interpretation of these terms,
meaning that, for many purposes, the leased or temporary employee will be
regarded as an employee of both the official employer and the company leasing
his or her services. What to do to deal with this possibility is given major
emphasis in this chapter.