By Michael C. Birch January 22, 2016
On January 21, 2016, the Department of Labor’s Wage & Hour Division (WHD) issued an Administrator’s Interpretation setting broadened standards for determining joint employment under the Fair Labor Standards Act (FLSA) and the Migrant and Seasonal Agricultural Worker Protection Act (MSPA).
When joint employment exists, the employee’s hours worked for all of the joint employers are aggregated and considered as one employment, including to determine whether overtime pay is due. Additionally, all of the joint employers are jointly and severally liable for compliance and financial recovery of wages. The Administrator’s Interpretation indicates that WHD will increasingly seek to hold companies liable as joint employers. Employers are, therefore, encouraged to review their potential status as a joint employer. For more information, click here to download a copy of our full alert.