Department of Labor Extends Effective Date of Rescission of the March 2020 Joint Employer Rule

How’s this for confusing? Yesterday, the U.S. Department of Labor announced it will extend the effective date of a final rule to rescind the final rule entitled “Joint Employer Status under the Fair Labor Standards Act,” which took effect in March 2020.  

Under the Fair Labor Standards Act (FLSA), joint employers are jointly and severally liable for shared employees’ protections, including but not limited to paying at least federal minimum wage and overtime compensation (i.e. not less than one-and-one-half times their regular rate of pay for every hour over 40 in a workweek for nonexempt employees.) The Joint Employer Status rule implemented a four-factor analysis more narrowly defining joint employers under the FLSA. By rescinding the rule, the DOL provides further flexibility in its enforcement to allow a fact-specific analysis in which two employers share a direct or indirect interest in the employee. 

The original September 28 effective date for the rescission is now October 5.