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Rescission Date for Joint Employer Rule Extended

Rescission Date for Joint Employer Rule Extended

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In July of this year, the U.S. Department of Labor (DOL) announced it was rescinding the 2020 Joint Employer Determination Rule (the Rule) effective September 28, 2021. On September 20, the DOL extended this date to October 5, 2021.

Joint employment is when two organizations share supervision and control of one or more employees. These employers are equally and individually responsible for compliance with labor and employment laws including the Fair Labor Standards Act (FLSA).

The Rule is being rescinded because it “improperly narrows the test for vertical joint employment and conflicts with decades of DOL interpretation, the text of the FLSA and Congressional intent.” Back in September of 2020, a federal court vacated part of the 2020 joint employer rule.

Employers should continue to comply with the parts of the 2020 Rule that remain in effect until October 5, 2021. After this date, it will be removed in its entirety, leaving room for previous joint determination guidance to apply.

Download the bulletin for more details.

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National Insurance Services is not a law firm and no opinion, suggestion, or recommendation of the firm or its employees shall constitute legal advice. Readers are advised to consult with their own attorney for a determination of their legal rights, responsibilities and liabilities, including the interpretation of any statute or regulation, or its application to the readers’ business activities.

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Ken Zastrow

Ken Zastrow

Ken Zastrow enjoys establishing a strong rapport with his clients. He believes that education is key in helping them understand their benefit plans. Ken has a strong background in underwriting and post-employment benefits. As Employee Benefits Consultant at National Insurance Services, Ken is responsible for the overall assessment and management of all an employer’s benefit plans including claim reconciliation, policy changes, renewals, and medical and dental analytics. He is also well versed in compliance, benefit integration, and early retiree benefits. Ken is a licensed insurance agent (Health, Life, Series 6 and Series 63) as well as a registered financial representative with GWN Securities. He works with schools, cities, and counties in Wisconsin.