Four-Factor Test Determines Joint Employer Liability in DOL Final Rule

In January 2020, the U.S. Department of Labor published the Final Rule which limits when employers, specifically a franchiser and its franchisees, can be considered to jointly employ workers under the Fair Labor Standards Act. The Final Rule goes into effect on March 16, 2020. It revises an Obama era policy that could have left franchisor corporations legally liable for unpaid overtime or minimum wages by their franchisees. The Final Rule uses a four-factor test to determine which entity has direct or indirect control of the employee. Read more about these four factors and reactions to the Final Rule here.