U.S. Department of Labor updates regulations for joint employer status

The U.S. Department of Labor’s Wage and Hour Division (WHD) has updated regulations interpreting joint employer status under the Fair Labor Standards Act (FLSA). The revisions have received praise from the National Waste and Recycling Association (NWRA) for adding regulatory certainty regarding what business practices may result in joint employer status.

“NWRA appreciates WHD’s recognition that the current situation lacks the clarity that businesses require in order to comply. The waste and recycling industry agrees with the need for a consistent standard to guide businesses in confidently deciding whether to enter into arrangements intended to constitute contractor relationships,” said NWRA President and CEO Darrell Smith.

The final rule includes a four-factor test to determine joint employer status in situations where an employee performs work for one employer that simultaneously benefits another entity or person.

The rule will take effect 60 days after publication on Jan. 16. More information about the rule can be found here.