Trump’s Labor Secretary: We’re rewriting the rules on joint employment. Here’s what businesses need to know
The U.S. Department of Labor is proposing a new rule to clarify joint employment under federal labor laws. This rule aims to define the responsibilities of employers when employees work for multiple companies, particularly regarding wages and benefits. The proposed changes seek to reduce confusion and improve compliance with labor laws.
- ▪The proposed rule addresses joint employment under the Fair Labor Standards Act and other labor laws.
- ▪It introduces a modified version of the 'Bonnette' test to determine joint employer status.
- ▪The rule aims to simplify enforcement efforts and reduce litigation related to joint employment.
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When someone performs parallel work for two different companies, are both companies responsible for complying with federal labor laws?Recommended Video The answer can have serious implications in a variety of scenarios, including when an employee is owed overtime pay and whether an additional company is obligated to pay it. It also determines whether an additional company is responsible for any assessed penalties if they violate federal labor law by having a young employee perform dangerous labor. That’s why the United States Department of Labor is taking steps to provide greater clarity.
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