Department of Labor’s New Joint Employer Standard Proposed Rule Would Unify FLSA, FMLA and MSPA Compliance April 30, 2026
April 30, 2026
On April 23, 2026, the U.S. Department of Labor (DOL) published a notice of proposed rulemaking that would establish a single standard for determining joint employer status under the Fair Labor Standards Act (FLSA), the Family and Medical Leave Act (FMLA) and the Migrant and Seasonal Agricultural Worker Protection Act (MSPA). Since rescinding its 2020 joint employer rule in July 2021, the DOL has offered no regulatory guidance, leaving employers grappling with varying tests applied by federal courts. The proposed rule would readopt a scaled-back version of the 2020 rule and, for the first time, apply a uniform analysis across all three statutes.
What Is a “Joint Employer” and Why Does It Matter?
A joint employer relationship exists when two or more separate businesses simultaneously employ the same worker and share legal responsibility under federal employment laws. Consequences vary by statute. Under the FLSA, joint employers are jointly and severally liable for wages, damages and penalties, and the worker’s weekly hours must be aggregated across joint employers to determine overtime entitlement. Under the FMLA, jointly employed workers count toward each joint employer for coverage and eligibility, but only the “primary” employer must provide leave, give required notices and maintain health benefits; a “secondary” employer may need to restore the employee to the same or equivalent position upon return. Under the MSPA, each joint employer must ensure the worker receives all statutory rights, including timely disclosure of employment terms, accurate payroll records and timely wage payment. In short, a joint employer finding can expose a business to significant liability for workers it does not consider its own.
