Start Date of Joint Employer Rule Extended

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

The final rule rescinds the “Joint Employer Status under the Fair Labor Standards Act,” that took effect in March 2020. The new rule will be effective October 5, 2021, extended from September 28, 2021.

The earlier rule 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.