Joint Employer Rule

Subscribe to Joint Employer Rule via RSS

The Department of Labor announced, April 22, 2026, a new Proposed Rule on who can be a joint employer under the Fair Labor Standards Act (FLSA), Family and Medical Leave Act (FMLA), and Migrant and Seasonal Agricultural Worker Protection Act (MSPA). Concerns over who may be deemed a joint employer—and thereby liable for the wrongs of either party to the joint employer relationship—typically arise in franchisor/franchisee or contractor/subcontractor relationships. In 2020, the DOL finalized a similar rule, but that rule was rejected by a court. The Proposed Rule attempts to conform to that court’s concerns. It also offers a uniform standard for assessing joint employer status under these three statutes.

This article provides a brief overview of the Proposed Rule’s key provisions and what employers need to know as the Proposed Rule moves through the public comment period.

Continue Reading The Latest Attempt by the DOL To Adopt Standards on Determining Joint Employer Status Under the FLSA, FMLA, and MSPA

Takeaways

  • The National Labor Relations Board has reinstated its 2020 joint employer standard, requiring substantial direct and immediate control over essential terms and conditions of employment to establish joint employer status.
  • The U.S. Department of Labor has proposed rescinding its 2024 independent contractor rule and returning to a Trump-era “economic reality” framework.
  • Employers should proactively reassess joint employer relationships and independent contractor classifications in light of these regulatory shifts and the DOL’s anticipated final rule later this spring.

NLRB Returns to 2020 Joint Employer Status Test

On February 26, 2026, the National Labor Relations Board announced a return to the joint employer status test in effect during President Trump’s first administration. The final rule replaces a 2023 Biden-era test that was vacated by an order from the United States District Court for the Eastern District of Texas on March 8, 2024. The Board explained that its final rule replaces the vacated regulatory text with the previous version of its rules that remain in effect after the Texas Order.

Continue Reading Flip-Flop: Feds Announce a Final Rule on Joint Employer Status and a Proposed Rule on Independent Contractor Status