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Issued nearly two years after DOL rescinded informal guidance on joint employment issued during the Obama administration, the proposal marks the first meaningful revision of the joint-employer rule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