On April 22, 2026, the U.S. Department of Labor (DOL) issued a proposed rule that would establish a uniform 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 DOL’s proposal aims to bring greater uniformity, consistency, and transparency with respect to its enforcement actions under these statutes.

A finding of a joint employment relationship can significantly expand employer liability, as joint employers may each be held jointly and severally liable for wage-and-hour violations, leave obligations, and statutory compliance. Under the proposed rule, a vertical joint employment relationship exists where a worker is jointly employed by two or more employers that simultaneously benefit from the same work. A horizontal joint employment relationship exists where an employee works separate hours for two or more employers that are sufficiently associated with each other. The proposed rule identifies inconsistent legal precedent and the DOL’s own lack of interpretive guidance as core reasons for establishing a uniform analytical framework governing joint employment determinations.

To determine whether a vertical joint employment relationship exists, the DOL’s proposed rule examines whether the potential joint employer can:

• Hire or fire the employee;
• Supervise or control work schedules or conditions of employment to a...

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