On January 12, 2020, the DOL announced a final rule to update the FLSA’s joint employer regulations. The final rule provides a four-factor balancing test for determining joint employment status where an employee performs work for one employer that also benefits another entity or individual. As explained in the DOL’s recent press release, the balancing test examines whether the potential joint employer:
- Hires or fires the employee;
- Supervises and controls the employee’s work schedule or conditions of employment to a substantial degree;
- Determines the employee’s rate and method of payment; and
- Maintains the employee’s employment records.
The final rule also clarifies when additional factors may be relevant to a determination of joint employer status and identifies certain business models, contractual agreements with the employer, and business practices that do not make joint employer status more or less likely. The final rule will be published in the Federal Register on January 16, 2020.
The DOL press release is here: https://www.dol.gov/newsroom/releases/whd/whd20200112
More information about the final rule is here: https://www.dol.gov/agencies/whd/flsa/2020-joint-employment
We will post again once the Final Rule is issued.