White House Finishes Review of Updated FLSA Joint-Employer Rule

March 4 the White House regulatory review office (OIRA) concluded its review of a proposed rule on Joint Employer status under the Fair Labor Standards Act (FLSA). The Administration’s sign-off comes only nine days after the rule was first submitted to OIRA by the U.S. DOL’s Wage and Hour Division, a faster than usual turnaround.

The DOL has yet to release details regarding the proposal’s contents, but the Biden Administration may potentially rescind the Trump-era FLSA joint employer rule. A new standard would likely return to the Obama-era DOL’s view that corporations are often accountable for the labor standards at their franchisees, subcontractors, staffing firms, and other affiliated companies.

This rulemaking is separate from the National Labor Relation Board’s joint-employer rule. It would address when more than one employer can be held jointly responsible for failing to pay minimum wages and overtime to workers.

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