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ARTICLE · 05 JUNE 2019

DOL Proposes Changes To Joint Employer Rule

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On April 1, 2019, the U.S. Department of Labor (DOL) gave notice of a proposed update to the regulations defining when two or more legally separate business entities may be considered "joint employers"

United StatesEmployment and HR
Brent Siler
Brent Siler
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On April 1, 2019, the U.S. Department of Labor (DOL) gave notice of a proposed update to the regulations defining when two or more legally separate business entities may be considered “joint employers” for determining liability under the Fair Labor Standards Act (FLSA). In other words, the agency has proposed a rule to clarify when related businesses—such as franchisors and franchisees, staffing companies and their clients, and contractors and subcontractors—may be jointly liable for overtime and minimum wage violations. The revised regulations, if enacted, should bring much-needed clarity to the joint employment issue and should be a welcome development for employers.

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