DOL Poised to Issue Joint Employment Final Rule

The Department of Labor seems poised to issue its final rule on joint-employment. Joint-employment is where two or more companies exercise sufficient control over a worker such that both considered to be the worker’s employers. Where joint employment exists, both companies can be liable for wage and hour violations.

The final rule welcomed by franchisers and franchisees who expect it to narrow the circumstances under which joint employment is found. The proposed version of the rule, issued last April, described four factors that would be considered collectively to determine if one company is a joint employer of another company’s workers:

    1. The ability to hire and fire;
    2. To supervise and control schedules;
    3. To set pay rates; and
    4. To maintain employment records.

 

Recently, the White House Office of Information and Regulatory Affairs removed the rule from its list of regulations under review. This signals that the rule is finished and about to be published in the Federal Register. Contact us with your questions about joint employment.