The U.S. Department of Labor has proposed a new rule establishing federal standards for determining joint employer status under the FLSA, FMLA, and MSPA.
On April 22, 2026, the U.S. Department of Labor’s (DOL) Wage and Hour Division published a proposed rule that would establish a federal standard for determining when two or more entities qualify as “joint employers” 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 proposal focuses on actual control over workers, rather than broad, theoretical authority. If finalized, the proposal is expected to reduce the likelihood that multiple entities will be deemed jointly liable for wage and hour violations. The public can comment on the proposal through June 22, 2026.
The proposed rule is particularly relevant for businesses that rely on staffing agencies, subcontractors, franchisees, and on-site vendors. Any company that uses third-party labor — whether temp workers on a production line, contracted janitorial crews, or franchised operations — should pay close attention.
Joint employer status is not merely a classification issue; it is a liability issue. If two entities are deemed joint employers, each can be held responsible for wage and hour violations, including unpaid wages and overtime. As a practical matter, this means a business working with a staffing company could be on...
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