DOL Proposes New Joint Employer Rule Under FLSA, FMLA, and MSPA
On April 22, 2026, the U.S. Department of Labor published a proposed rule titled Joint Employer Status Under the Fair Labor Standards Act, Family and Medical Leave Act, and Migrant and Seasonal Agricultural Worker Protection Act. The rule aims to establish a clear, unified standard for determining when multiple employers are jointly liable for wage and hour violations, filling a regulatory gap that has persisted since the prior rule was rescinded without replacement.
What the Proposed Rule Does. The proposed regulation would define joint employer status across three federal statutes—the FLSA, FMLA, and the Migrant and Seasonal Agricultural Worker Protection Act—broadening the scope beyond the prior rule, which addressed only the FLSA. According to the DOL, the rule is intended to resolve circuit splits among federal courts of appeals, streamline employer compliance, and strengthen worker protections by ensuring employees receive all wages and benefits owed, even when one employer is unable or unwilling to pay.
Key Statements from DOL Leadership. Acting Labor Secretary Keith Sonderling stated that the proposal reflects the administration's commitment to "simplifying compliance for American employers and strengthening protections to put American workers first.” Wage and Hour Division Administrator Andrew Rogers emphasized that the rule would “deliver much-needed regulatory clarity in the face of divergent judicial precedent throughout federal courts of appeals.”
Practical Implications. Employers that rely on PEOs, staffing agencies, subcontractors, franchisees, or other third-party labor arrangements should pay close attention to this rulemaking. If finalized, the rule could affect how joint employment relationships are evaluated under federal law—potentially expanding or clarifying the circumstances under which businesses share liability for wage and hour, leave, and migrant worker protection obligations. The DOL has stated it believes the regulation would promote better business practices, provide certainty, and reduce litigation.
Timeline and Next Steps. The proposed rule is now open for public comment through June 22, 2026. Employers and other stakeholders are encouraged to review the full text of the proposal and consider submitting comments during the notice-and-comment period. We will continue to monitor this rulemaking and provide updates as developments occur.
If you have questions about this Client Alert or are interested in additional details or guidance, please reach out to Gordon M. Berger (gordon.berger@pierferd.com) or your regular PierFerd contact for assistance.
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