Department of Labor’s (DOL) Move to Limit Joint Employment Liability

The US Department of Labor (DOL) just became the latest federal agency to propose a revised four-factor rule in its attempt to limit the scope of joint employment liability. This comes as a revision to their initial attempt in April 2019 and it is possible that this rule may bring in a new phase in how joint employer liability impacts companies. It is likely that fewer businesses will be deemed joint employers per a court or agency when it comes to minimum wage, overtime, and other Fair Labor Standards Act (FLSA) liabilities.

For employers, now is the time to examine your current business model and revise it as necessary to capitalize on the benefits of this new phase before the rule takes effect on or around March 16, 2020.