Takeaways

• The DOL has proposed a new rule that would reshape how joint employer status is analyzed under the FLSA. The standard, if finalized, would also define joint employment under the Family and Medical Leave Act and the Migrant and Seasonal Agricultural Worker Protection Act.
• Although the proposed rule draws from the DOL’s 2020 framework, it moves back toward a more expansive and practical view of joint employment, particularly in light of recent court decisions.
  The public comment period ends on 06.22.26.

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Article

The Department of Labor’s (DOL) Wage and Hour Division published a proposed rule on April 23, 2026, adopting a standard to determine joint employer status under the Fair Labor Standards Act (FLSA). According to DOL, the proposed rule would fill a regulatory gap and, if finalized, create a nationwide standard and bring “greater uniformity and consistency to the Department's enforcement actions by adopting a transparent nationwide analysis, which could have benefits for all interested parties.”

The standard in the proposed rule is similar to a final rule issued in 2020 during the first Trump Administration. That rule was partially invalidated by a federal court and was formally rescinded in 2021 by the Biden DOL. The current proposed rule reflects consideration of the court’s 2020 decision rejecting certain provisions in the 2020 rule.

Courts have adopted various multifactor tests to analyze joint employment under the FLSA. In the proposed rule...

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