CWC Urges DOL To Adopt Clear Joint Employer Standard

June 24, 2026

What's New

CWC filed comments with the Department of Labor’s Wage and Hour Division supporting a proposed joint employer rule under the Fair Labor Standards Act, the Family and Medical Leave Act, and the Migrant and Seasonal Agricultural Worker Protection Act. CWC urged DOL to adopt a predictable standard grounded in an entity’s actual role in the employment relationship.

The proposed rule would restore guidance similar to DOL’s 2020 joint employer rule and align the analysis more closely with Supreme Court and federal court precedent, particularly for vertical joint employment.

CWC emphasized that the proposed four-factor test properly focuses on whether the putative joint employer:

hires or fires the employee;
supervises and controls the employee’s work schedule or conditions of employment to a substantial degree;
determines the employee’s rate and method of payment; and
maintains the employee’s employment records.

What It Means

If finalized, the proposal would move DOL’s joint employer analysis closer to the 2020 rule and give employers a more administrable framework for evaluating FLSA joint employer risk. It would not create new compliance obligations, but it could help employers assess and document their position under the FLSA.

What You Should Do

Employers should monitor the rulemaking and consider how the proposed framework may affect their assessment of FLSA joint employer risk, particularly in contractor, staffing, vendor, and franchise relationships.

Employers seeking a deeper understanding of classification risks should consider enrolling in CWC’s Fundamentals of Wage and Hour Compliance course.

RELATED CONTENT

Add

Data pager
Data pager
1 2 3 Page size: 5 10 20 50 Change page size 12 items in 3 pages

Show all 12

Federal Court Blocks NLRB Joint Employer Rule, Reinstates Trump-Era Rule

Mar 12, 2024 – A federal court has vacated the NLRB's 2023 joint employer rule, restoring the 2020 version. The court ruled the 2023 rule was too broad, which benefits businesses by making it harder to establish joint employer status.

DOL Claims Auto Manufacturer Is Jointly Liable for Child Labor Violations Committed by Its Supplier

Jun 5, 2024 – On May 30, 2024, DOL sued Hyundai, alleging joint liability for child labor violations by a supplier and staffing firm, marking a revival of the “fissured workplace” theory in enforcing labor standards under the FLSA.

DOL Proposes Clearer, More Balanced Joint Employer Test

May 13, 2026 – DOL’s proposed joint employer rule would explain how joint liability is determined under the FLSA, MSPA, and FMLA by defining vertical and horizontal employment.

DOL Issues Guidance On Joint Employment

Oct 7, 2025 – A new DOL opinion letter finds that a restaurant and a members’ club located inside the same hotel – and which had common spaces and services, ownership, workers, pay rates, and coordinated work shifts – were joint employers under the FLSA.

NLRB Delays Joint Employer Rule Until February In Response To Legal Challenges

Nov 28, 2023 – Congress has reached a short-term deal to fund DOL and EEOC operations through February 2, 2024.

Subscribe to CWC's Updates and Events

CLICK TO SIGN UP

New Tab

Resources

Our library of sources helping you understand and manage your workplace requirements and risks.

Data Center

Metrics and dashboards guiding you to make statistics and research-driven decisions.

Events

Learn and network at events focused on compliance policy, practice, and strategy.

Diversance Connect

Helping members find and connect with thousands of outreach and recruitment sources.