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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The Rule is being rescinded because it “improperly narrows the test for vertical joint employment and conflicts with decades of DOL interpretation, the text of the FLSA and Congressional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.
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