The U.S. Department of Labor has proposed a NEW joint employer rule under the Fair Labor Standards Act (FLSA). If your business uses contractors or is a contractor, this rule might impact your business.
The proposed rule would do the following:
- Revise and clarify the responsibilities of employers and joint employers to employees in joint employer arrangements; and
- Propose a clear, four-factor test—based on well-established precedent—that would consider whether the potential joint employer actually exercises the power to:
- Hires or fires the employee;
- Supervises and controls the employee’s work schedule or conditions of employment;
- Determines the employee’s rate and method of payment; and
- Maintains the employee’s employment records.
NFIB is encouraging members to comment on the proposed rule, which NFIB strongly supports. Read NFIB’s Comment Letter. Comments are due by June 25, 2019.