DOL proposes new "joint employer" rule

Geez, the U.S. DOL has been busy! On Monday, they announced "a proposed rule to revise and clarify the responsibilities of employers and joint employers to employees in joint employer arrangements." The joint employer standard has been a hot topic for a while now.

Let's cut to the chase - DOL proposes the following rule for FLSA matters:

Not official use.

[A] clear, four-factor test —based on well-established precedent—that would consider whether the potential joint employer actually exercises the power to:" :

• hire or fire the employee; 

• supervise and control the employee’s work schedules or conditions of employment; 

• determine the employee’s rate and method of payment; 

• and maintain the employee’s employment records.

Note that the employer must "actually exercise the power" - this was one point of disagreement across administrations under the NLRA.

Additional information from DOL:

• Notice of Proposed Rulemaking: Joint Employer Status under the FLSA
• Fact Sheet: Notice of Proposed Rulemaking to Update the Regulations Governing Joint Employer Status under the FLSA
• Frequently Asked Questions About the Proposed Rule
• Examples Clarifying Joint Employment Status