The US Department of Labor (USDOL) today released its much
anticipated and significant Notice of
Proposed Rulemaking (NPRM) intended to update and clarify the
USDOL's interpretation of joint employer status under the Fair
Labor Standards Act.
By way of background, in 2017, USDOL withdrew the
previous administration's guidance on the topic of joint
employment, providing a clear sign that changes likely were coming
to the USDOL's analysis of joint employment.
What Do You Need To Know?
In today's notice of proposed rulemaking, which is open to
public comment for 60 days once it is published in the federal
register, the USDOL is proposing to issue regulations providing a
new and different standard for joint employment. The USDOL proposal
is a welcome turn to a clear standard that requires the
"actual" exercise of control, rather than the difficult
to define "potential" exercise of control.
