The U.S. Department of Labor announced a final rule to rescind the “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 both responsible for employee protections including but not limited to paying at least federal minimum wage and overtime compensation at 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 for defining joint employer under the Fair Labor Standards Act. By rescinding the rule, the DOL is reverting to a more flexible standard of review in which the two employers share a direct or indirect interest in the employee.
The rule is effective on September 28, 2021. Questions of interpretation and/or enforcement can be directed to the nearest Wage and Hour Division district office. District and area office locations can be found here: Local Offices | U.S. Department of Labor (dol.gov)
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