U.S. Department of Labor’s Joint Employer Proposed Rule
Last Friday, March 5th, the U.S. Department of Labor issued their proposed joint employment liability rule, which would limit the circumstances in which multiple companies such as fast-food corporations and their franchisees are jointly responsible for minimum wage and overtime violations. The Trump Administration’s joint employer test was struck down in federal court last year. The Justice and Labor departments appealed that ruling in November.
Although the substance of the Biden administration’s rulemaking remains unclear, it’s expected that it will highlight that businesses often are accountable for the labor standards at their franchisees, subcontractors, staffing firms, and other affiliated companies. I will keep you updated as this proposed rule continues to unfold.