Joint-Employer Protection Included in Small-Business Health Rule

The Labor Department’s rule expanding small-business access to association health plans contains a protection against joint-employer liability.

The DOL released a final rule June 19 changing the definition of “employer” to make it easier for more small businesses to band together by industry or geography to form an association to purchase health coverage as a large group. The rule answered the call from franchise groups, such as the International Franchise Association, to include language that clarifies that small businesses in the plans aren’t on the hook for claims brought by another employer’s workers.

IFA represents both franchisers—like McDonald’s, Domino’s, Dunkin’ ...