Industry NewsU.S. Department of Labor Proposes Joint Employer Rule

U.S. Department of Labor Proposes Joint Employer Rule

The U.S. Department of Labor (DOL) this week announced a proposed rule revising and clarifying the definition of “joint employer” under the Fair Labor Standards Act (FLSA)—a regulation that the Department said it has not revised since 1958. The new rule would use four factors to define joint employers: whether an employer has the power to hire or fire, supervise and control schedules or employment conditions, determine rate and method of payment, and maintain employment records.

The newly announced rule aims to, “ensure employers and joint employers clearly understand their responsibilities to pay at least the federal minimum wage for all hours worked and overtime for all hours worked over 40 in a workweek,” according to the DOL’s Notice of Proposed Rulemaking.

The proposed rule has been submitted to the Office of the Federal Register for publication, and once published, the public will have 60 days to comment on the proposal.

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