Expanded Definition of Joint Employer Stands

(from Society of Human Resources Management) A federal appeals court recently dismissed a lawsuit challenging a rule from the Trump administration that clarified when businesses share liability as "joint employers" under the Fair Labor Standards Act (FLSA). The a U.S. Circuit Court of Appeals dismissed the case as moot because the Biden administration rescinded the regulation. The DOL has yet to propose regulatory guidance replacing the prior administration's rule. The rescission makes it more likely that an employer will be determined to be a joint employer and thus be liable under the FLSA for another employer's actions. 

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