DOL issues proposed rule on joint employer liability under FLSA, FMLA, and MSPA

On April 22, 2026, the U.S. Department of Labor (DOL) issued a notice of proposed rulemaking to clarify the standard for determining joint employer status under the Fair Labor Standards Act (FLSA), the Family and Medical Leave Act (FMLA), and the Migrant and Seasonal Agricultural Worker Protection Act (MSPA). If finalized, the proposed rule would have significant implications for employers that rely on staffing agencies, subcontractors, professional employer organizations, or other multi-entity labor arrangements.

Overall goal

According to the DOL, the proposed rule establishes a single nationwide standard to promote clarity, consistency, and predictability for employers, workers, and enforcement personnel in an area of law characterized by divergent judicial tests and circuit splits. The proposed rule is subject to change after the DOL reviews comments submitted. The comment period is open until June 22.

At the heart of the proposed rule is its effort to align joint employer analysis across the FLSA, FMLA, and MSPA by grounding all three frameworks in the FLSA’s statutory definition of “employ” and “employee.” The DOL explained that because both the FMLA and MSPA expressly incorporate the FLSA’s employment definitions, applying a unified analytical framework is necessary to ensure consistent enforcement. The proposed rule addresses both “vertical” and “horizontal” joint employment relationships and how those are established.

Vertical joint employment test