Situation Report | September 27, 2021
On September 20, the U.S. Department of Labor (US DOL) announced an extension of the effective date of the rescission of the “Joint Employer Status Under the Fair Labor Standards Act” final rule. The effective date of the Joint Employer Rule is October 5, 2021.
Under the Fair Labor Standards Act (FLSA), an employee can have more than one employer for the work they perform. Joint employment applies when – for the purposes of minimum wage and overtime requirements – US DOL considers two separate companies to be a worker’s employer for the same work. For example, a joint employer relationship could occur where 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.
As explained in the July 29 final rule, the US DOL believes that the rescinded rule improperly narrowed the test for vertical joint employment and conflicted with decades of Department interpretation, the text of the Fair Labor Standards Act and Congressional intent.
For more information about the FLSA or other laws it enforces, visit the Wage and Hour Division website or call toll-free 1-866-4US-WAGE.