DOL Proposes New Joint-Employer Rule Clarifying Joint-Employer Status
Key Takeaways: The DOL is moving toward a more predictable and control-focused framework. In determining joint-employer status, the proposed rule emphasizes actual control over employees and work conditions rather than broader or more expansive theories. Franchise and business-to-business relationships receive meaningful protection. The proposal expressly recognizes the DOL’s longstanding position that certain business models, such as the franchise model, do not themselves indicate joint-employer status. The DOL is attempting to harmonize inconsistent standards across federal law. The DOL repeatedly notes that federal appellate courts currently apply differing joint-employer standards and that the absence of regulatory guidance has created uncertainty for businesses, workers, and courts. The U.S. Department of Labor (DOL) has issued a proposed rule (Joint-Employer Status Under the Fair Labor Standards Act (FLSA), Family and Medical Leave Act (FMLA), and Migrant and Seasonal Agricultur...