DOL Proposes Updated Joint Employer Standard

The U.S. Department of Labor has issued a proposed rule that would revise how joint employer status is determined under the Fair Labor Standards Act, Family and Medical Leave Act, and Migrant and Seasonal Agricultural Worker Protection Act. The Wage and Hour Division published the proposal in the Federal Register on April 23, 2026, and is accepting public comments.

The draft rule adopts a “totality of the circumstances” test that considers both control over key employment terms—such as hiring, firing, pay decisions, scheduling, and record keeping—and broader indicators of economic dependence. This represents a shift from narrower interpretations that focused primarily on direct and immediate control.

The Department says the updated framework is intended to provide clearer guidance for employers and ensure workers receive the protections tied to their employment status.

The proposal comes as the National Labor Relations Board is currently applying its 2020 joint employer standard under the National Labor Relations Act, which focuses more narrowly on direct and immediate control, following a federal court decision vacating the Board’s 2023 rule.