On April 23, 2026, the U.S. Department of Labor published a proposed rule clarifying when multiple employers may be jointly liable under certain wage-and-hour laws: 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), RIN 1235-AA48.
As explained in a news release by Acting Labor Secretary Keith Sonderling, the proposed rule is intended to create a clearer nationwide federal framework that “would give businesses more confidence to invest in partnerships, help employees understand their rights, and make the department’s investigations more efficient.”
Currently, since the Department rescinded its 2020 FLSA joint-employer rule in 2021, there has been no DOL regulatory guidance governing joint-employer status under the FLSA, and federal courts have continued to apply differing judicial formulations under the FLSA, FMLA, and MSPA. The Department has now proposed restoring certain of the 2020 FLSA guidance and aligning the analysis under the FLSA, FMLA, and MSPA. Comments are due by June 22, 2026.
The new rule would distinguish between “vertical” and “horizontal” joint employment.
For vertical joint-employment questions, the proposed rule centers on four principal factors, asking whether the potential joint employer:
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