The U.S. Department of Labor (DOL) announced on July 29 that it will formally rescind regulations issued by the prior administration defining “joint employer” status under the Fair Labor Standards Act (FLSA). The Department issued its proposal to roll back the regulations in March.
FLSA-covered employees are required to be paid a minimum wage, are entitled to overtime pay at one-and-a-half times their regular rate of pay for work beyond 40 hours in a week, and are subject to certain recordkeeping requirements.
Littler Mendelson attorneys, Jim Paretti, Michael J. Lotito, and Maury Baskin, penned an article last week stating, “Courts are now likely to return to the application of various (and not always consistent) multi-factor tests derived from the cases interpreting the Department’s outdated 1959 standard. This in turn means less certainty for employers as to when they may be liable for wage and hour violations under the FLSA as a “joint employer” of an unrelated company’s employees.”
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