Bloomberg Law
April 1, 2019, 10:26 AM

Labor Department to Limit Companies’ ‘Joint Employer’ Liability

Chris Opfer
Chris Opfer

The Labor Department today will roll out a proposal to shield franchisers and businesses that hire workers through staffing firms from liability for some minimum wage and overtime pay violations.

The DOL’s proposed regulation will update “joint employer” liability for minimum wage and overtime pay purposes. The department plans to weigh four factors—the ability to hire and fire, supervise and control schedules, set pay rates, and maintain employment records—to determine whether one company is a joint employer of another company’s workers, an official told Bloomberg Law.

The move marks the first “meaningful” update to joint employer liability since 1958, the ...

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