DOL Proposes Joint Employer Status Rule Under FLSA, FMLA, MSPA

News Release

US Department of Labor proposes rule clarifying joint employer status under federal wage and hour laws

Proposal would simplify compliance for employers, help employees understand their rights WASHINGTON – The U.S. Department of Labor’s Wage and Hour Division today announced a proposed rule to address joint employer status under the Fair Labor Standards Act, the Family and Medical Leave Act, and the Migrant and Seasonal Agricultural Worker Protection Act.

Through its proposal, the department seeks to address the dearth of departmental regulatory guidance by proposing a single nationwide standard that both derives from commonalities in federal court precedent where available and resolves significant differences among the circuit courts where they exist. In doing so, the department would ensure employees and employers have a clear, consistent understanding of when multiple employers are jointly responsible for protecting the wages and other rights of an employee.

“Under President Trump’s leadership, the Department of Labor is committed to simplifying compliance for American employers and strengthening protections to put American workers first,” said Acting Secretary of Labor Keith Sonderling. “This proposal helps us deliver on that promise. A clear standard on joint employment would give businesses more confidence to invest in partnerships, help employees understand their rights, and make the department’s investigations more efficient.”

When a joint employment relationship exists, those employers are jointly and severally liable for any wages, damages, and other relief owed to employees, including paying for all hours the employee worked for all joint employers, and all overtime premiums due for that time. By restoring regulatory guidance for determining joint employer status under the FLSA and aligning the FLSA analysis with the analysis under the FMLA and MSPA, the department believes the proposal would promote better business practices, provide certainty, reduce litigation, and enhance uniformity in the way courts and the Wage and Hour Division apply three laws that share the same statutory scope of employment.

“The rule we propose today would deliver much-needed regulatory clarity in the face of divergent judicial precedent throughout federal courts of appeals. Clear guidance strengthens worker protections because it ensures that employees receive all wages and benefits they are owed, even if one employer is unable or unwilling to pay,” said Wage and Hour Division Administrator Andrew Rogers. “The proposal would also reduce compliance and litigation costs for employers while helping Wage and Hour Division investigators identify what is and is not a joint employment relationship.”

The department encourages all interested parties to submit comments on the proposed rule, which has a 60-day comment period that closes at 11:59 p.m. EDT on June 22, 2026.

Workers and employers can call the Wage and Hour Division with questions and requests for compliance assistance at its toll-free helpline, 866-4US-WAGE (487-9243). The agency’s PAID program offers employers an opportunity to self-report and resolve potential minimum wage and overtime violations under the FLSA, as well as certain potential violations under the FMLA.

Read the proposed rule.

Agency Wage and Hour Division Date April 22, 2026 Release Number 26-601-NAT Media Contact: Grant Vaught Phone Number 202-693-4672 Email vaught.grant.e@dol.gov Share This
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