The Department of Labor’s recent proposed rulemaking on joint employer status would provide much-needed clarity on the agency’s joint employer standard and should be finalized, the NAM said this week.

What’s going on: A DOL proposal published in April aims to amend how joint employer status is determined under the Fair Labor Standards Act and would define “joint employer” under the Family and Medical Leave Act and the Migrant and Seasonal Agricultural Worker Protection Act.

• In February, the National Labor Relations Board formally rescinded the previous administration’s 2023 joint employer rule—which the NAM opposed—returning to a 2020 standard.
• “The proposed rule’s revisions to the previous standard that was challenged in court and ultimately rescinded will help ensure that a finalized rule withstands future challenges and grants industry the certainty needed to plan for the long term,” the NAM told the DOL on Monday.

What it would do: The draft “rule will support manufacturing growth in America, as it will allow manufacturers to confidently manage their labor force using contractors and franchisees,” the NAM continued.

• Manufacturers depend heavily on contract workers and franchisees for flexibility, specialization, cost control and more, so “having a clear definition of what makes a business a joint employer will help manufacturers plan their contractor and business structures accordingly.”
• The steps taken to reduce confusion about employer status would help...

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