Labor Department Proposes Unified Joint Employer Standard

The Department of Labor has proposed a rule clarifying joint employer status under federal wage and hour laws, saying the proposal would make it simpler for employers to comply with the laws and for employees to understand their rights.

Announced by the Department’s Wage and Hour Division, the proposed rule would address joint employer status under the Fair Labor Standards Act, the Family and Medical Leave Act, and the Migrant and Seasonal Agricultural Worker Protection Act, according to a Wednesday (April 22) press release. The proposal is open to public comment through June 22.

The proposal is designed to provide a single nationwide standard to provide a clear understanding of when multiple employers are jointly responsible for protecting wages and other rights of employees, according to the release.

“A clear standard on joint employment would give businesses more confidence to invest in partnerships, help employees understand their rights, and make the department’s investigations more efficient,” Acting Secretary of Labor Keith Sonderling said in the release.

Wage and Hour Division Administrator Andrew Rogers said in the release that there are currently differences in the judicial precedents throughout the federal courts of appeals regarding joint employer status.

“Clear guidance strengthens worker protections because it ensures that employees receive all wages and benefits they are owed, even if one employer is unable or unwilling to pay,” Rogers said. “The proposal would also reduce compliance and litigation costs for employers while helping Wage and Hour Division investigators identify what is and is not a joint employment relationship.”

In a statement shared in a post on X by the House Committee on Education and Workforce, the committee’s chairman, Rep. Tim Walberg of Michigan, said the Department of Labor’s proposed rule will provide legal and regulatory clarity.

“When businesses have room to grow, they thrive,” Walberg said in the statement. “The Trump administration is removing needless, bureaucratic overreach and empowering employers — and employees — to successfully manage their own working partnerships.”

Reuters reported Wednesday that the proposed rule is similar to one that was implemented during President Donald Trump’s first term but rescinded during the term of former President Joe Biden.