The Labor Department’s controversial proposal on shared liability for wage and hour infractions in franchise and staffing arrangements is undergoing review by the White House ’s Office of Information and Regulatory Affairs. This is the first step of regulatory review before a proposal can be released to the public for comments.

It’s unclear what the rule will look like once published, but it’s widely expected that the DOL will move to limit shared liability for multiple businesses in contractual relationships. The proposal is simply titled, “Joint Employer Status Under the Fair Labor Standards Act,” and no details are provided. Joint...