DOL Rescinds Joint Employer Rule

The Department of Labor (DOL) announced that it will officially rescind the joint employer rule promulgated by the Trump administration, effective September 28.

Following the publication of a Notice of Proposed Rulemaking (NPRM) and review of comments, the DOL established a four-part balancing test derived from the U.S. Court of Appeals, Ninth Circuit's 1983 decision in Bonnette v. California Health & Welfare Agency.

In the joint employer scenario where another person is benefiting from the employee's work, the new rule is that the four factors to be assessed are whether the other person:

• Hires or fires the employee
• Supervises and controls the employee's work schedule or conditions of employment to a substantial degree