The Department of Labor yesterday released a final rule updating and clarifying how it interprets joint employer status under the Fair Labor Standards Act, which aims to promote certainty for employers and employees, reduce litigation and encourage innovation in the economy. The first major update to DOL’s joint employer guidelines since 1958, the final rule provides a four-factor test for determining FLSA joint employer status in situations where an employee performs work for one employer that simultaneously benefits another entity or individual. The test examines whether the potential joint employer hires or fires the employee; supervises and controls the employee’s work schedule or conditions of employment to a substantial degree; determines the employee’s rate and method of payment; and maintains the employee’s employment records. The potential joint employer’s maintenance of the employee’s employment records alone will not lead to a finding of joint employer status. The final rule also clarifies factors that are not relevant to determining joint employer status. The rule takes effect 60 days after its publication in the Jan. 16 Federal Register.

Related News Articles

Headline
The AHA’s Next Generation Leaders Fellowship July 29 announced its 36 fellows for the class of 2026, who will each work with mentors to address a specific…
Headline
The Centers for Medicare & Medicaid Services July 17 issued two letters to states regarding policies on continuous eligibility and workforce initiatives.…
Headline
The House Energy and Commerce Subcommittee on Health today held a hearing to discuss legislative proposals on health care, including two AHA-supported bills…
Headline
The U.S. Department of Health and Human Services July 10 rescinded a policy that extended certain federal public benefits to immigrants lacking permanent legal…
Headline
The AHA July 2 expressed support for the Resident Physician Shortage Reduction Act (H.R. 3890), bipartisan legislation that would add 14,000 Medicare-funded…
Headline
Boston Medical Center’s Jeff Schneider, M.D., associate chief medical officer, designated institutional official and chair of the Graduate Medical Education…