Summary:
- DOL proposes four-factor test for vertical joint employment
- Trump-era 2020 rule vacated in New York v. Scalia
- Michigan attorneys debate clarity and potential court challenges
If the U.S. Department of Labor’s proposed rule to address joint employer status under the Fair Labor Standards Act, Family and Medical Leave Act, and Migrant and Seasonal Agricultural Worker Protection Act takes effect, it should help achieve the DOL’s goals of resolving significant differences among the circuit courts and ensuring that employees and employers have a clear, consistent understanding of when multiple employers are jointly responsible for protecting a worker’s wages and other rights, employment attorneys say.
“Consistency is the biggest takeaway,” Royal Oak employment attorney Jennifer L. McManus said. “There are so many different tests that are applied right now, whether it’s for the FLSA or the FMLA, and the different number of factors that they’re using [means] employers that have businesses in … different states … can’t even really count on how they should be counting the number of employees … for the purpose of these statutes.”
Clinton Township employment attorney Heidi T. Sharp agreed that uniformity among the varying standards is helpful.
“Whenever we can provide a clear test or get closer to a ‘bright line’ rule, I believe that is helpful to the public and employers because they are able to make decisions and determinations based upon clear expectations,” she said....
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