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DOL finalizes FLSA joint employer rule, limiting business liability

January 14, 2020 / Ryan Golden

The U.S. Department of Labor (DOL) has limited joint employer liability under the Fair Labor Standards Act (FLSA) in final regulations published Jan. 12. The rule, slated to be published in the Federal Register Jan. 16, spells out the circumstances under which more than one business can be held liable for FLSA violations. It largely adopts the "four-factor balancing test" from DOL's proposed version of the rule while also clarifying that an employee's "economic dependence" on an employer does not determine whether it is a joint employer. The rule also provides additional examples of business models, business practices and contractual agreements that do not make joint employer status more or less likely under the FLSA. The rule is set to take effect March 16, 2020, or 60 days from the date of publication.