DOL Proposes New Joint-Employer Rule: U.S. Department of Labor Proposes Significant Revision to Test for Determining Joint-Employer Status Under the FLSA

Sullivan & Cromwell LLP - April 25, 2019
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On April 1, 2019, the U.S. Department of Labor proposed a new four-part test for identifying whether a person or entity may be held liable as a “joint employer” for violations of the wage-and-hour provisions of the federal Fair Labor Standards Act.  The proposed test, which is narrower than the test currently employed by the Second Circuit, would find that a joint-employment relationship exists “only if that person is acting directly or indirectly in the interest of the employer in relation to the employee.”