DOL Tries to Untangle Who Pays Wages: Joint Employer Puzzle Proposed
Published Date: 4/23/2026
Proposed Rule
Summary
The Department of Labor is proposing clear rules to decide when two companies share responsibility for workers’ rights under key laws like minimum wage, family leave, and farmworker protections. This change helps workers and employers understand who’s in charge and makes enforcement fair and consistent across the country. If finalized, these rules could affect many businesses and workers starting soon, with potential impacts on compliance costs and legal clarity.
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Analyzed Economic Effects
4 provisions identified: 1 benefits, 0 costs, 3 mixed.
Clear test for FLSA joint employers
The Department of Labor proposes a clear rule in Part 791 for when two companies share responsibility under the Fair Labor Standards Act (FLSA). The proposal is intended to clarify who is responsible for minimum wage, overtime, and recordkeeping and the Department is accepting comments through June 22, 2026.
FMLA will use DOL’s FLSA test
The Department proposes to amend Family and Medical Leave Act (FMLA) regulations so that joint-employer status under the FMLA is determined using the Department's FLSA analysis. If you are an employee covered by the FMLA, this aligns how joint employers are identified across those laws.
MSPA joint-employer rule follows FLSA test
The Department proposes to amend Migrant and Seasonal Agricultural Worker Protection Act (MSPA) regulations so joint-employer status under MSPA is determined using the Department's FLSA analysis. This would affect agricultural employers, farm labor contractors, and migrant and seasonal agricultural workers.
Nationwide enforcement standard for investigators
The proposal would give Wage and Hour investigators a single nationwide standard to decide joint-employer status so enforcement is more consistent across states and federal circuits. The Department says this standard is intended to reduce litigation and provide predictable analysis for employers and workers.
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Key Dates
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