Yesterday, the National Labor Relations Board (NLRB) released the final version of its new joint employer rule, which limits the circumstances in which franchisors and businesses that use employees hired by third parties can be required to bargain with employees of those third parties and held jointly liable for violations of federal labor law. The new rule – the result of a larger effort by the Trump administration to limit joint employer liability under federal employment law – rolls back a more expansive Obama-era standard established by the NLRB in 2015.… More
Tag Archives: joint employment
Last week, the U.S. Department of Labor (DOL) released the final version of its new “joint employer” rule. The rule limits the scenarios in which businesses will be treated as joint employers under the Fair Labor Standards Act (FLSA) and, therefore, reduces their potential liability for FLSA violations committed by their business partners.
The final rule, which goes into effect on March 16, 2020, requires that a business exercise control over workers in order to be considered their joint employer.… More
On April 1, 2019, the U.S. Department of Labor (DOL) issued a proposed rule that would clarify when two entities may be considered joint employers of an employee for purposes of the Fair Labor Standards Act (FLSA), and therefore may be held jointly and severally liable for FLSA violations. The rule comes nearly two years after the DOL withdrew Obama-era guidance broadly interpreting the rules regarding joint employment (see … More
On February 26, 2018, the National Labor Relations Board vacated its recent ruling in the Hy-Brand Industrial Contractors, Inc. case that had set a new standard for determining joint employer status. The action was not for substantive reasons. Instead, it was due solely to a conflict that arose because one of the Board members who decided the case, William Emanuel, had previously worked for a law firm that had represented a party in the case.… More
On June 7, 2017, the United States Department of Labor (“DOL”) announced that it is withdrawing the prior Administration’s guidance on joint employment and independent contractors. The Obama Administration had issued Administrator’s Interpretations (“AI”) in 2015 and 2016 that demonstrated its expansive view of who was an “employer” and “employee” for purposes of compliance under the Fair Labor Standards Act (“FLSA”). “Joint employment” had been broadly defined to capture certain relationships between associated companies and companies that use third parties for labor.… More