The US Department of Labor recently proposed a rule, which if adopted, will increase the possibility that two distinct companies are determined to be a joint employer with respect to claims under the FLSA (wages/overtime), FMLA (leave), and MSPA (seasonal work).
The DOL’s proposal provides two ways joint employment can be established:
- Vertical Joint Employment: two or
more employers benefit simultaneously from an employee’s work.
- Horizontal Joint Employment: an employee works separate hours for "sufficiently associated" employers.
- Whether the person/entity hires or fires the employee
- Whether the person/entity substantially supervises or controls the employee’s work schedule or conditions of employment
- Whether the person/entity determines the employee’s rate and method of employment
- Whether the person/entity maintains employee’s employment records
- Whether an employer acts, directly or indirectly, in the interest of another employer
- Whether there is an arrangement between employers to interchange employees
- Whether one employer controls or is controlled by another employer, or is under common control with another employer
- Electronic Comments: Submit comments through the Federal eRulemaking Portal at https://www.regulations.gov. Follow the instructions for submitting comments.
- Mail: Address written submissions to: Division of Regulations, Legislation, and Interpretation, Wage and Hour Division, U.S. Department of Labor, Room S-3502, 200 Constitution Avenue NW, Washington, DC 20210.




