Two employers treated as one for overtime

For employment law purposes, two companies can be considered a single (or joint) employer under some circumstances. In an opinion letter dated September 30, 2025, the U.S. Department of Labor’s (DOL) Wage and Hour Division (WHD) explained what happens with overtime obligations under the Fair Labor Standards Act (FLSA) when an employee works for two companies that are later found to be a joint employer.

How two employers operated

According to the specific facts presented to the WHD, one employer operated a restaurant located on the first floor of a hotel, and the second operated a members-only club on the second floor. Although the two employers shared some common ownership, the two were separate business entities, used different employee timekeeping systems, and had distinct payroll systems.

On the other hand, there were some common features between the two employers, including the following:

·     Both paid the same hourly rates.