Thank you for sharing!

Your article was successfully shared with the contacts you provided.
Gavel on book The International Franchise Association (IFA) praised the new rule as a “return to a simple, clear, and thoughtful joint-employer standard.”

The U.S. Labor Department under President Trump is changing course from the Obama administration and revising guidelines to determine joint-employer status under the Fair Labor Standards Act – “in order to promote certainty for employers and employees, reduce litigation, promote greater uniformity among court decisions and encourage innovation in the economy.”

The nonbinding rule, which takes effect March 15, is intended to give more clarity when an entity can be considered a joint-employer that could be sued for labor violations including requirements on minimum wage and overtime pay. The Labor Department’s joint-employer status guidelines under Obama were much more expansive, making it easier for workers to sue more than one entity for labor violations, like for example, both the McDonald’s Corp. and separately owned franchises that own McDonald’s restaurants.

Complete your profile to continue reading and get FREE access to BenefitsPRO.com, part of your ALM digital membership.

Your access to unlimited BenefitsPRO.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical BenefitsPRO.com information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com

Already have an account?

Katie Kuehner-Hebert

Katie Kuehner-Hebert is a freelance writer based in Running Springs, Calif. She has more than three decades of journalism experience, with particular expertise in employee benefits and other human resource topics.

More from this author



Join BenefitsPRO

Don’t miss crucial news and insights you need to navigate the shifting employee benefits industry. Join BenefitsPRO.com now!

  • Unlimited access to BenefitsPRO.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
  • Exclusive discounts on BenefitsPRO.com and ALM events.

Already have an account? Sign In Now
Join BenefitsPRO

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.