The Center for Workplace Compliance filed comments with the Labor Department supporting the Wage and Hour Division’s proposed joint employer rule under the Fair Labor Standards Act, the Family and Medical Leave Act, and the Migrant and Seasonal Agricultural Worker Protection Act. CWC, our affiliated nonprofit membership association, urged DOL to adopt a predictable standard grounded in an entity’s actual role in the employment relationship.
The proposed rule would restore guidance similar to DOL’s 2020 joint employer rule and align the analysis more closely with Supreme Court and federal court precedent, particularly for vertical joint employment.
CWC emphasized that the proposed four-factor test properly focuses on whether the putative joint employer: hires or fires the employee; supervises and controls the employee’s work schedule or employment conditions to a substantial degree; determines the employee’s pay rate; and maintains the employee’s employment records.
If finalized, the proposal would give employers a more workable framework for evaluating FLSA joint employer risk. It would not create new compliance obligations.
CWC members can read more here. Employers seeking a deeper understanding of classification risks should consider enrolling in CWC’s Fundamentals of Wage and Hour Compliance course.