DOL Announces Proposed Joint Employer Rule

April 08, 2019

The U.S. Department of Labor (DOL) has announced it will publish a notice of proposed rulemaking to amend its existing regulations regarding whether a business qualifies as a joint employer under the Fair Labor Standards Act (FLSA). The FLSA requires covered employers to pay nonexempt employees at least the federal minimum wage for all hours worked and overtime for all hours worked more than 40 in one workweek. The proposed rule would clarify when additional businesses are jointly and severally liable with the employer for the employee’s wages under the FLSA. The DOL proposed a four-part balancing test to determine whether a business qualifies as a joint employer, which would balance whether the potential joint employer: hires or fires the employee; supervises and controls the employee’s work schedule or conditions of employment; determines the employee’s rate and method of payment; and maintains the employee’s employment records. SESCO has a long history of ensuring that employers are compliant with federal and state wage and hour requirements. If employers have any questions or concerns about their pay practices, we recommend they contact us to ensure compliance.