DOL Releases Final Rule to Clarify Joint Employment

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On January 12, 2020, the federal Department of Labor (DOL) announced the release of a final rule clarifying issues surrounding joint employment, which is of particular interest to employers that use staffing agencies, have franchise relationships, and use subcontractors. The effective date of the new rule is March 16, 2020.

Source: erhui1979 / DigitalVision Vectors / Getty Images

When does the joint employer rule come into play? The Fair Labor Standards Act (FLSA) requires that employees be paid at least minimum wage for all hours worked. Nonexempt employees must be paid overtime for any hours worked over 40 in a

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