At a Glance
- Rule proposes joint employer analyses for “vertical” and “horizontal” joint employment to be applied under subject laws.
- Proposed rule largely tracks joint employment regulations promulgated in 2020 during the first Trump administration, later struck down in federal court.
- DOL identifies changes made in new proposal to address perceived legal shortcomings of the 2020 rule.
On April 22, 2026, the U.S. Department of Labor released a proposed rule regarding joint-employer status under the Fair Labor Standards Act (FLSA), Family and Medical Leave Act (FMLA), and Migrant and Seasonal Agricultural Worker Protection Act (MSPA). 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.
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