Lindsay M. Massillon, left, and Elizabeth Pryor Johnson, right, of Fowler White Burnett.
On Jan. 16, 2020, the Department of Labor (the DOL) will publish its anticipated final rule revising its interpretation on “joint employer” relationships under the Fair Labor Standards Act, 29 U.S.C. Section 201 et seq. (FLSA). The rule will become effective March 16, 2020, 60 days after its publication.
The joint employer relationship is a hotly contested issue within FLSA litigation because if an entity or individual is deemed to be a joint employer of an employee seeking overtime compensation or minimum wage, that entity or individual would be jointly and severally liable to the employee for any damages awarded for unpaid overtime or minimum wage. The current iteration of the interpretive FLSA regulation on the topic, 29 C.F.R. Part 791, contains vague language related to joint employers. The DOL deemed this language “not necessarily helpful,” and published a notice of proposed rulemaking suggesting modification of Part 791 in April 2019. Until now, Part 791 had not been changed since it became effective over 60 years ago.
