Proposed ’Joint Employer‘ Rule Change Could Benefit Employers

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Source: Lexology
By Tully Rinkley PLLC
May 17, 2019

The U.S. Department of Labor (DOL) recently announced a proposed rule that would clarify when joint employment exists and, in turn, the responsibilities of “joint employers” to pay employees minimum wages and overtime premiums under the Fair Labor Standards Act (FLSA).

The proposed rule, announced April 1, 2019, aims to ensure that employers and joint employers clearly understand their responsibilities to pay employees at least the minimum wage for all hours worked, and an overtime premium of time and one-half for all hours worked over 40 in a workweek, according to the DOL.

“The proposed changes would provide courts with a clearer method for determining joint employer status, promote greater uniformity among court decisions, and reduce litigation,” said Acting DOL Administrator Keith Sonderling in a statement.

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