DOL Unveils Joint Employer Rule, Targeting Workplace Liability Clarity
The U.S. Department of Labor proposed a new rule clarifying joint employer status on April 22, 2026.
Why it matters: The proposal could reshape employer liability and compliance obligations for companies with layered workforces or shared staffing. A clear national standard will affect how organizations structure contracts, manage partnerships, and navigate wage and hour laws.
- Rule announced April 22, 2026, with public comments open until June 22, 2026.
- A four-factor test will define vertical joint employment under FLSA, FMLA, and MSPA.
- Horizontal joint employment will hinge on employer association and shared control.
- The move follows a lack of regulatory standard since the 2021 rescission of the 2020 rule.
The U.S. Department of Labor (DOL) proposed a new rule on April 22, 2026, aiming to clarify how joint employer status is determined under major federal workplace laws such as the Fair Labor Standards Act (FLSA), Family and Medical Leave Act (FMLA), and the Migrant and Seasonal Agricultural Worker Protection Act (MSPA).
- The proposed rule replaces ambiguity left by the rescission of the 2020 joint employer rule, which was invalidated in part by a federal court and withdrawn by DOL in 2021, leaving businesses without a clear standard (industry analysis).
- For vertical joint employment, DOL suggests a uniform, four-part test: Does the potential joint employer 1) hire or fire the employee, 2) supervise and control work schedules or conditions of employment to a substantial degree, 3) determine the rate and method of pay, and 4) maintain employment records?
- For horizontal joint employment, the focus is on whether employers are sufficiently associated, such as through arrangements to share employees or jointly control employment (legal analysis).
Regulatory officials frame the change as strengthening protections and promoting certainty. "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. Acting Secretary of Labor Keith Sonderling emphasized, "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."
The DOL is accepting public feedback on the proposed rule through June 22, 2026.
By the numbers:
- 4 factors — new test for vertical joint employment under federal labor laws
- 60 days — public comment period ending June 22, 2026
Yes, but: Details on how the rule will affect specific industries or business models remain unclear.
What's next: The DOL will review public comments and may issue a final rule following the June 22, 2026 deadline.