McDaniel

BACKGROUND

FlashCo is in the business of manufacturing and selling prefabricated roof flashings. Insperity is a professional employer organization that provides administrative and consulting services to small companies. Under a Client Service Agreement with FlashCo, Insperity administered payroll and employee benefits for FlashCo and served as an off-site full-service human resources department for the company. In 2010, FlashCo hired McDaniel as a production worker. In 2013, after FlashCo and Insperity executed the Client Service Agreement, McDaniel signed an employment agreement with Insperity. This contract provides that FlashCo and Insperity have a “co-employment relationship” with McDaniel. In March 2016, McDaniel was hired as the plant manager for FlashCo’s Downey, California plant. Beginning in November 2016, FlashCo’s Director of Operations, Eric Compton, was McDaniel’s direct supervisor. Compton reported directly to FlashCo’s president, Greg Morrow, and did not work for Insperity. At his deposition, Morrow testified that when McDaniel was hired as a plant manager, he was concerned McDaniel was “over his head” due to his limited experience and management skills and lack of…