5 Things To Watch As DOL Wades Into Joint-Employer Debate

By Vin Gurrieri (April 2, 2019, 10:12 PM EDT) -- The U.S. Department of Labor's proposal to streamline its test for determining whether multiple businesses are jointly liable for wage violations puts the agency in the middle of a contentious debate over whether a tighter standard would let franchisors off the hook too easily.

The DOL on Monday issued a proposed regulation updating its 60-year-old framework for analyzing whether two or more businesses qualify as joint employers under the Fair Labor Standards Act, focusing on whether a franchisor or contractor's actions actually affect the terms and conditions of workers' employment. If two businesses are deemed joint employers under the FLSA, they...

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