The Joint Employer Rule speaks to the applicability of the Honest Labor Requirements Act (“FLSA”) in sure employment conditions by which multiple entity might doubtlessly be deemed the employer of an worker.
Though the FLSA could seem easy on the floor, it has fairly a couple of weeds to get misplaced in.
For instance, it’s attainable for 2 separate corporations to be thought-about the employee’s employer for a similar work — which means the businesses are “joint employers.”
Joint employment points generally come up in conditions involving a franchisor or an organization that makes use of staffing companies or subcontractors.
The FLSA defines “employer,” however it doesn’t outline “joint employer.” Because of this, the DOL should step in to offer steering about how the FLSA ought to apply to multiparty employment preparations, and it has traditionally finished so by issuing administrative interpretations. The DOL did this in early 2020 by issuing the Joint Employer Rule.
The Joint Employer Rule offered a clearer commonplace to find out joint employment standing and located assist with teams akin to commerce associations and enterprise advocacy organizations.
Typically, the Joint Employer Rule contained laws making it tougher to declare an entity to be a joint employer. This resulted in fewer staff receiving the FLSA’s minimal wage and additional time protections and led to opposition from labor unions, employee advocacy teams, and political figures now able to vary the rule.