FP Staffing Snapshot: New DOL Joint Employer Proposal Is Good News for the Staffing Industry
The US Department of Labor just proposed a new rule to give businesses greater clarity and reduced liability around joint employer status under federal wage and hour law, and few industries will benefit as much as staffing. How the DOL defines joint employment has direct consequences on how you structure client relationships, negotiate service agreements, and manage your co-employment exposure. Here’s a quick recap of what the DOL just proposed and a staffing-specific guide for what this means for your business model. Quick Recap of New Joint Employer Proposal The DOL’s Wage and Hour Division released a proposal outlining a four-factor test to determine when two businesses are legally considered joint employers under the FLSA, FMLA, and MSPA. With no single factor being dispositive, the test examines whether: a business hires or fires the employee; supervises and controls their work schedule or conditions of employment to a substantial degree; determines their rate and method of payme...