DOL proposes regulations simplifying joint employer analysis for employers

On April 22, 2026, the U.S. Department of Labor (DOL) issued proposed regulations simplifying the analysis on whether multiple employers are considered joint employers under the Fair Labor Standards Act (FLSA), the Family and Medical Leave Act (FMLA), and the Migrant and Seasonal Agricultural Worker Protection Act (MSPA). The public has 60 days to provide the DOL with any comments.

Vertical and horizontal

The proposed regulations provide new guidance related to both vertical joint employment and horizontal joint employment. 

Vertical joint employment involves an employee who has a relationship with one employer and another business that contracts with the employer to provide labor. The most common vertical joint employment relationship is a staffing company and its client. 

Horizontal joint employment describes an employee who typically works for two or more employers in the same workweek, and those employers are sufficiently related.

Factors for vertical joint employment

According to the proposed regulations for vertical joint employment, the main factors include:

• Who hires or terminates the employee;

• Who supervises the employee and controls their working conditions to a substantial degree;

• Who determines the employee’s compensation; and

• Who maintains the employee’s employment records.