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United States Department of Labor Proposes Four-Factor Test to Determine Joint Employer Liability

On April 1, 2019, the United States Department of Labor issued a proposed rule to update the responsibilities of employers and joint employers. The proposed rule would establish a four-factor test to determine joint liability for minimum wage and overtime violations. The four-factor test looks to see if the potential joint employer exercises the power to (1) hire or fire employees, (2) supervise and control the employee’s work schedule and condition of employment, (3) determine the employee’s rate and method of employment, and (4) maintain the employee’s employment records.

To read the proposed rule with examples applying the four-factor test, click here.

Authors: Matthew John Markling and the McGown & Markling Team.

Note: This blog entry does not constitute – nor does it contain – legal advice. Legal jurisprudence is like the always changing Midwestern weather. As a result, this single blog entry cannot substitute for consultation with a McGown & Markling attorney. If legal advice is needed with respect to a specific factual situation, please feel free to contact a McGown & Markling attorney.

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