A new DOL opinion letter concludes that a restaurant and a members’ club located inside the same hotel were joint employers under the Fair Labor Standards Act.

DOL found that the following facts suggested joint employment:

  • Facilities appearing operationally integrated, including physical proximity, common spaces, and common services;
  • Shared ownership;
  • Management teams that periodically supervised work for the other entity;
  • Workers who clocked in to one employer were occasionally directed to work at the other;
  • Identical rates of pay; and
  • Shifts that did not interfere, suggesting scheduling coordination.

In cases of joint employment, both businesses are fully liable for FLSA compliance, including overtime pay, and all hours worked at each entity must be combined when calculating overtime.

Members of the Center for Workplace Compliance (CWC), our affiliated nonprofit membership association, can read more here.