New Joint Employer Rule Protects Worker Pay

The U.S. Department of Labor (DOL) last week announced a final joint employer rule that will ensure workers receive minimum wage and overtime protections of the Fair Labor Standards Act (FSLA).

The new rule rescinds an earlier rule that included a description of joint employment contrary to statutory language and Congressional intent. The rule also failed to consider the DOL’s prior joint employment guidance.

Under the FLSA, an employee can have more than one employer for the work they perform. Joint employment applies when the DOL considers two separate companies to be a worker’s employer for the same work, for the purposes of minimum wage and overtime requirements. For example, a joint employer relationship could occur when a hotel contracts with a staffing agency to provide cleaning staff, which the hotel directly controls. If the agency and the hotel are joint employers, they are both responsible for worker protections.

“Joint employment is part of our longstanding federal labor laws,” said Wage and Hour Division Acting Administrator Jessica Looman. “The U.S. Department of Labor’s Wage and Hour Division will continue to follow the law and judicial precedent when evaluating joint employer relationships to enforce worker protections.”

The final rule becomes effective Sept. 28, 2021.