DOL Rescinds 2020 Final Rule Regarding Joint Employment

The issue of joint employment is one of the most debated and controversial topics in employment law as workplace arrangements are constantly evolving. Under the Biden Administration, the U.S. Department of Labor (DOL) just rescinded a final rule titled "Joint Employer Status Under the Fair Labor Standards Act," that took effect on March 16, 2020 under the Trump Administration. The 2020 final rule was more employer friendly. By rescinding the 2020 final rule, the DOL is likely returning to its earlier joint employer rules or some semblance of such - which were, in comparison, more employee friendly.    

Background

The Fair Labor Standards Act (FLSA) requires all covered employers to pay nonexempt employees at least the federal minimum wage for every hour worked in a non-overtime workweek and overtime premiums (generally one and one-half times the employee's regular rate) for every hour worked in excess of 40 in a workweek. An individual or entity is liable for