The big picture: A Tennessee appeals court has ruled that staffing contracts cannot override the actual co-employment status of temporary workers when the host company maintains significant operational control. This decision prioritizes the reality of the working relationship over contractual disclaimers.

Why it matters: This ruling reinforces the legal responsibilities of host companies for contingent workers, impacting potential liability, benefits, and compliance for both staffing firms and their clients.

Between the lines:

• The court found the host company controlled the worker's hours, tools, and supervision.
• This level of operational control established a de facto co-employment relationship.
• Contractual language attempting to block co-employment was deemed insufficient against these facts.

Staffing & HR impact: Staffing firms must ensure client contracts accurately reflect operational control to mitigate co-employment risks and potential joint employer liability. HR departments at host companies face increased scrutiny over their direct management of temporary staff.

The bottom line: Operational control, not just contract language, dictates co-employment status, demanding vigilance from all parties.