On April 22, 2026, the U.S. Department of Labor announced a proposed rule to clarify joint employer status under three major federal employment laws: the Fair Labor Standards Act (FLSA), the Family and Medical Leave Act (FMLA), and the Migrant and Seasonal Agricultural Worker Protection Act (MSPA). The proposal aims to establish a single, clear nationwide standard for determining when two or more employers are jointly liable for wages, overtime, and other worker protections. The proposed rule fills a regulatory void that has persisted since the Biden administration rescinded the prior joint employer rule in 2021.
Why this matters
Joint employment is a concept that applies when two or more businesses share control over an employee’s working conditions. When a joint employment relationship is found to exist, all employers involved are jointly and severally liable for wages, damages, and other relief owed to the employee, including overtime calculated across all hours worked for each joint employer. Without clear regulatory guidance on the books, businesses have faced uncertainty and inconsistent court rulings that vary widely by court and region.
If finalized, the DOL’s proposed rule would be the agency’s first joint employer regulation in force in over five years, following a period in which the first Trump administration’s 2020 rule was struck down by a New York federal judge and then formally rescinded by the DOL under the Biden administration in 2021. At its heart, the...
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