The Biden Administration’s Department of Labor (DOL), as most observers expected and with the strong endorsement of organized labor and other worker advocacy groups, has formally rescinded Trump-era regulations that were designed to provide helpful guidance to employers and the courts on the standards that apply for determining whether a business is a joint employer of an employee for purposes of the Fair Labor Standards Act (FLSA).
As a practical matter, rescission of the rule – DOL is not proposing an alternative – essentially means that employers have no regulatory guidance from DOL on the issue of joint employment under the FLSA, having instead to rely on sub-regulatory interpretations and judicial precedent.
Members of the Center for Workplace Compliance (CWC) can read more here.