The joint employer issue made another round in Washington, D.C., this week, this time at the United States Department of Labor, which introduced a new rule to determine status.
The department in a press release said the rule was based on federal court precedent and sets distinctions for legal joint employer scenarios. One of those scenarios, labeled a “horizontal” distinction, applies when separate employers are associated with respect to the employment of a worker.
The rule, though, notes business relationships which have “little to do with the employment of specific employees,” including franchising, are insufficient in establishing joint employment.
“Under President [Donald] Trump’s leadership, the Department of Labor is committed to simplifying compliance for American employers and strengthening protections to put American workers first,” said Acting Labor Secretary Keith Sonderling. “This proposal helps us deliver on that promise. A clear standard on joint employment would give businesses more confidence to invest in partnerships, help employees understand their rights and make the department’s investigations more efficient.”
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