Organizations looking for clarity on joint employer issues—from wage and hour classification to unionization—got a first look recently at where the Trump administration intends to steer the topic.
The U.S. Department of Labor on April 22 unveiled its proposed joint employer status rule, a closely watched area where regulations have been upended several times between the Biden and Trump administrations.
The latest proposal, according to the DOL, pursues a “single, nationwide standard” to guide decision-making related to joint employment—when two or more entities could be considered to employ the same worker, a question that arises in franchise, staffing agency and outsourcing arrangements, for instance.
The proposal sets forth that employment decisions be based primarily on four factors, including whether the organization is responsible for hiring and firing the employee; manages work schedule and employment conditions “to a substantial degree”; sets pay; and maintains the employee’s records. The DOL cautioned that other factors can be considered, but a unanimous finding on these four would suggest a “substantial likelihood” to inform the joint employment assessment.
The rule would apply to decisions under the Fair Labor Standards Act, Family and Medical Leave Act and Migrant and Seasonal Agricultural Worker Protection Act.
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