The Shelby Report: Fed Proposes New Test To Clarify Definition Of Joint Employer

Last Updated on October 9, 2020

HR & Benefits News is a monthly column by Chris Cooley, co-founder of MyHRConcierge and SMB Benefits Advisors.

If you’re involved in a franchise arrangement or use a staffing firm to hire seasonal or temporary workers, you’ll be interested in the proposal issued by the U.S. Department of Labor (DOL) on April 1, to more clearly define joint employer status.

The proposal is meant to help firms with the same employee better understand when they are jointly obligated to comply with the Fair Standards Labor Act (FSLA)—a law that sets minimum wage, overtime pay eligibility, recordkeeping and child labor standards that affect full-time and part-time workers.