Labor officials propose throwing out Joint Employer Determination Rule

The U.S. Department of Labor this month proposed getting rid of the 2020 Joint Employer Determination Rule used when two or more organizations share supervision of an employee.

Joint employers are equally and individually responsible for complying with labor laws, including the Fair Labor Standards Act. Federal labor officials who oversee joint employment situations try to prevent cases where one employer uses another employer to shield them from meeting their compliance obligations.

The DOL is proposing to rescind the rule after finding it goes against longstanding agency interpretations and court rulings. The DOL also said he rule uses a test that is too narrow and that nixing the rule would ultimately provide stronger worker protections.

Although it’s been effective for a year, a federal court vacated most of the rule in September, 2020.

The court made that decision after 17 states and Washington D.C. challenged the rule in federal court saying it ran counter to the Fair Labor Standards Act and that it was “arbitrary and capricious.”

Getting rid of the rule has only been proposed at this point. The DOL is considering public comments on that proposal until April 12.