US Labor Department proposes nationwide joint employer standard
Updated
Updated · The National Law Review · May 1
US Labor Department proposes nationwide joint employer standard
12 articles · Updated · The National Law Review · May 1
The April 22 proposal would unify tests under the FLSA, FMLA and MSPA, with public comments due by 11:59 p.m. ET on 22 June 2026.
It uses a four-factor test focused on hiring, supervision, pay and records, while also making reserved contractual control and economic dependence relevant in some cases.
Franchisors, manufacturers, staffing users and subcontracting businesses could face broader joint liability, though franchising, safety rules, quality controls and sample handbooks alone are treated as neutral.
With overlapping DOL and NLRB standards, how can businesses confidently structure contracts and operations without risking joint employer status or compliance gaps?
Could the new joint employer rule make your business unexpectedly liable for another company's wage or leave violations—even if you never directly manage their staff?