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DOL Will Propose Limiting Joint-Employer Overtime Liability

March 06, 2019 / Stephen Miller

The Department of Labor (DOL) has sent to the White House for review a proposed rule that would narrow the definition of a joint employer under the Fair Labor Standards Act (FLSA). While the rule hasn't been made available to the public yet, White House review usually indicates that the proposal will be published soon. The DOL's rule will address the circumstances under which businesses can be held jointly responsible for overtime-pay violations by their contractors or franchisees. It is separate from a proposed National Labor Relations Board (NLRB) rule defining joint employment under the National Labor Relations Act that is expected to be finalized later this year. On Feb. 28, the DOL sent its proposed rule, the Joint Employer Status Under the Fair Labor Standards Act, to the Office of Information and Regulatory Affairs, which is part of the White House's Office of Management and Budget (OMB), according to a notice published on the agency's website.