Today, Republican Leader of the Education and Labor Committee, Rep. Virginia Foxx (R-NC), issued the following statement in support of the Department of Labor’s (DOL) final rule to clarify the standard to determine joint-employer status under the Fair Labor Standards Act (FLSA):
“I applaud DOL for providing workers and job creators with a more uniform, clear, and precise standard to determine joint-employer status. DOL’s final rule is good news for everyone who hopes to own a small business and pursue the American Dream. Unfortunately, the Obama administration’s overly broad guidance and inconsistent circuit court decisions interpreting joint-employer status under the FLSA led to a patchwork of different standards, muddying the waters and creating uncertainty for many small business owners and entrepreneurs. Today’s rule provides important and necessary clarity regarding DOL policy and promotes worker flexibility and opportunity, which will encourage long-term economic growth and prosperity.”
Background: DOL has not significantly altered its joint-employer regulation since 1958. Today’s final rule detailing a four-factor test for determining joint employment ensures that employers clearly understand their responsibilities under the FLSA, which sets minimum wage and overtime standards. Republican Leaders on the Education and Labor Committee sent a comment letter earlier this year in support of DOL’s efforts to clarify joint-employer status.
