The U.S. Department of Labor’s (“DOL”) Wage and Hour Division announced a proposed rule on April 22, 2026, to address how “joint employer” status is determined under the Fair Labor Standards Act (“FLSA”), Family and Medical Leave Act (“FMLA”), and Migrant and Seasonal Agricultural Worker Protection Act (“MSPA”). The DOL’s previous attempt at a joint employer rule, issued in 2020, was rescinded in 2021 following its partial invalidation in New York federal court. The proposed rule was published in the Federal Register on April 23.
The DOL’s new proposal—which appears to be a practical effort at clarification rather than an attempt to blaze new trails—would set a unified standard across the FLSA, FMLA, and MSPA for when two or more entities share responsibility for the same workers. Companies using staffing agencies, subcontractors, franchise models, or other multi-employer arrangements should take note.
A “joint employer” relationship exists when two or more entities simultaneously employ the same worker and share legal obligations under federal employment laws. Under the FLSA, joint employers are jointly and severally liable for wage and hour violations, and hours worked for all joint employers must be aggregated for overtime calculations. Under the MSPA, each joint employer must ensure migrant and seasonal agricultural workers get all statutory protections. For the FMLA, all joint employers must count jointly...
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