On January 12, 2020, the U.S. Department of Labor (DOL) issued a new rule that clarifies when two entities may be considered to be joint employers. (Who knew the DOL worked on Sunday?! ) This rule impacts not only franchisees but many other employers.
The final rule provides a four-factor balancing test for determining FLSA joint employer status in situations where an employee performs work for one employer that simultaneously benefits another entity or individual. EX? An employer that uses a temporary employment agency.
The rule will take effect March 16, 2020.