The U.S. Department of Labor (DOL) has rescinded a final rule issued under the Trump administration that narrowed the definition of “joint employer” under the Fair Labor Standards Act (FLSA). The rescission makes it more likely that an employer will be held to be a joint employer and thus liable under the FLSA for another employer’s actions.
Under the rescinded rule, the DOL would, when determining whether a company is a joint employer, consider whether a business:
