The U.S. Department of Labor issued a new proposed rule outlining when a joint employer status applies for purposes of the Fair Labor Standards Act (FLSA) for minimum wage and overtime, the Family and Medical Leave Act, and the Migrant and Seasonal Agricultural Worker Protection Act. The issue addressed by the proposed rule is when two companies can be responsible for a single employee’s work. A 2020 rule was challenged in court and that rule was rescinded. The new proposed rule addresses vertical joint employment (when two or more employers benefits simultaneously from the employer’s work) and horizontal joint employment (when an employee works separate hours for two or more joint employers in the same workweek), as well as the relevance of certain business practices. #IdeaoftheDay
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