Authors: Marty Heller, John Polson (Fisher-Phillps)

Striking another blow against the Trump-era joint employer rule that briefly created a new and more business-friendly standard to wage and hour compliance, the Department of Labor today proposed rescinding the rule altogether, which would most likely cement into place a broad standard that captures a wide swath of workers and business arrangements into the “joint employer” category. Today’s announcement doesn’t change anything in the short term – the Trump-era rule has been on ice since a New York federal judge struck it down in September 2020, and businesses have been operating under the standards previously set by courts around the country since then. However, in the long term, businesses can expect DOL to take further regulatory action to return to standards similar to the Obama-era approach to joint employer status.