The following article first appeared in the News & Analysis section of Littler Mendelson’s website. It is reposted here with permission.
On April 22, 2026, the U.S. Department of Labor released a proposed rule regarding joint-employer status under the Fair Labor Standards Act, Family and Medical Leave Act, and Migrant and Seasonal Agricultural Worker Protection Act.
The proposed rule is expected to be published in the Federal Register shortly, and will be open for public comment for 60 days from its date of publication, suggesting that comments will be due in late June 2026.
By way of background, under the FLSA, an employee of one company may be found to be jointly employed by a second, independent company, depending on the nature and extent of the control over the employee’s work exerted by the second business.
This may have significant consequences. For example, a joint employer may be held jointly and severally liable for FLSA wage and hour obligations to the employee (for example, payment of minimum wage, or payment of overtime to non-exempt employees).
The principles contained in the proposed rule will likewise apply to joint-employment scenarios and liabilities under the FMLA and MSPA.
The proposed rule discusses two potential types of joint employment—“vertical” joint employment and “horizontal” joint employment—and offers a different mode of analysis for each.
The department explains that in a “vertical” joint employment scenario, an employee is jointly...
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