“Joint” at the Hip? The DOL's New Proposal Could Reshape Joint Employer Liability

Short summary

The DOL proposes a new four-factor test for joint employer liability, focusing on actual control rather than contractual authority. Companies using staffing agencies, contractors, and franchises get clearer liability protection, though state laws may impose stricter standards. Comment period closes June 22, 2026.

• •DOL four-factor test: hire/fire, supervise, pay, maintain records determine joint employer status
• •Reserved control and economic dependence return as factors, reducing liability exposure for large clients
• •Exempts franchising, quality control, health/safety agreements, and brand compliance from joint liability analysis

Generated with AI, which can make mistakes.