Department of Labor proposes new joint-employer standard
The US Department of Labor’s (DOL) Wage and Hour Division recently announced a proposed rule that would establish a standard for determining joint-employer status under the Fair Labor Standards Act (FLSA), the Family and Medical Leave Act (FMLA), and the Migrant and Seasonal Agricultural Worker Protection Act (MSPA) . The proposed rule seeks to harmonize the joint-employment framework by i mplementing a uniform standard across these three federal statutes. Notably, the 60-day comment period ended on June 22, 2026 . In Depth Under the FLSA, joint employers are “jointly and severally liable” for compliance with the statute’s requirements, including overtime pay . The proposed rule distinguishes between vertical and horizontal business relationships, establishing a separate standard for determining joint-employer status for each scenario . Vertical joint employment exists when an employee is “jointly employed by two or more employers that simultaneously benefit from the employee’s work” ...