The doctrine “joint employer” liability has received significant attention in recent months, including on this blog. Under the Fair Labor Standards Act, an employee may be deemed to have multiple employers—each of whom would be liable jointly for all aspects of FLSA compliance, including with regard to the payment of wages—in connection with his or her performance of the same work. During the prior administration, the U.S. DOL issued a rule intended to standardize the parameters of joint employer liability. Months later, however, a federal court invalidated a portion of the new rule, holding that it impermissibly narrowed the scope of the joint employer doctrine. And, in July 2021, the DOL announced its outright repeal of the rule—i.e., whether a business might face joint employer liability will again be governed by the multi-factor “economic reality” test subject to varying judicial interpretations.
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Recent Updates
- The U.S. Department of Labor’s Final Rule Increasing the Salary Threshold for EAP Exemptions Took Effect, Except for the State of Texas as an Employer
- Plaintiffs in California Putative Class Action Lose Numerous Challenges to Enforcing Arbitration, Barring Unclean Hands
- California Governor’s PAGA Deal: What Employers Need to Know - Employment Law This Week
- Minimum Wage Increases (and Other Changes) Are Coming on July 1, 2024
- New Jersey Wage Theft Act Does Not Apply Retroactively, Per the State Supreme Court