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DOL Rescinds Joint Employer Rule

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Editor's note: This article has been updated to reflect the new effective date of the rescission.

The U.S. Department of Labor (DOL) released a new final rule on July 29 that rescinds the previous administration’s “joint-employer” rule that went into effect in March 2020.

Under the now-rescinded rule, the DOL was directed to consider a four-factor test for determining shared liability for related wage and hour violations under the Fair Labor Standards Act (FLSA). Those factors included whether or not an employer:

  • Determines employees’ rate and method of payment
  • Hires and fires employees
  • Maintains employment records
  • Supervises and controls employees’ work schedules or conditions of employment to a substantial degree

The new final rule, effective September 28, 2021, reasserts that there is vertical and horizontal joint employment and ensures more workers receive minimum wage and overtime protections under the FLSA. More information on the change is available from the Federal Register.

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Keith McLemore
Keith McLemore
HR and Compensation Consultant

Keith McLemore joined HR Services in 2015 and assists districts with compensation planning and development. He has 17 years of experience traveling the state supporting public education employees.

McLemore received a bachelor’s degree from Southwestern University and a master’s degree from Texas Tech University, both with a focus on research analysis and design. He is a SHRM-CP.

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TASB HR Services supports HR leadership in Texas schools through membership offerings in specialized training, consulting, and other services.

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