03
Apr
Labor Department Announces Proposed Rule to Clarify Join Employer Status
From NAHB Now
The Labor Department on April 1 announced a proposed rule to provide a clearer methodology for determining joint employer status. The proposal is meant to provide employers clarity and certainty regarding their responsibility to pay federal minimum wage and overtime for all hours worked over 40 in a workweek.
To establish whether one company is a joint employer of another company’s workers, the Labor Department intends to propose four factors to determine whether the potential joint employer actually exercises the power to:
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- Hire or fire the employee;
- Supervise and control the employee’s work schedules or conditions of employment;
- Set the employee’s pay rate and method of payment; and
- Maintain the employee’s employment records.