US: DOL Extends Comment Period for Proposed Joint-Employer Standard | Mercer

US: DOL Extends Comment Period for Proposed Joint-Employer Standard

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US: DOL Extends Comment Period for Proposed Joint-Employer Standard
US: DOL Extends Comment Period for Proposed Joint-Employer Standard
Calendar15 May 2019

The comment period for the Department of Labor (DOL) rule clarifying the standard for joint-employer status under the Fair Labor Standards Act has been extended by two weeks — to 25 Jun 2019. The proposal’s new balancing test for determining whether a business is a joint employer would likely reduce the number of situations where joint-employer status would apply. The test focuses on the employer’s actual — not theoretical control — over an employee’s terms and conditions of work. 

Issued nearly two years after DOL rescinded informal guidance on joint employment issued during the Obama administration, the proposal marks the first meaningful revision of the joint-employer rule since 1958.

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