Department of Labor announces final rule to rescind Trump era joint-employment regulation


The US Department of Labor today announced a final rule to rescind a Trump-era rule covering joint employment of workers such as between staffing firms and client companies.

“The rescinded rule included a description of joint employment contrary to statutory language and Congressional intent,” according to the department. “The rule also failed to take into account the department’s prior joint-employment guidance. The US District Court for the Southern District of New York vacated most of the rule in 2020.”

Under the old rule, a four-factor test had been established for determining joint-employer status. Reuters reported the old rule made it more difficult for companies to be held liable as joint employers.

“Joint employment is part of our longstanding federal labor laws,” said Wage and Hour Division Acting Administrator Jessica Looman. “The US Department of Labor’s Wage and Hour Division will continue to follow the law and judicial precedent when evaluating joint employer relationships to enforce worker protections.”

The new final rule rescinding the old one takes effect Sept. 28.