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In this Notice of Proposed Rulemaking, the Department will propose to clarify the contours of the joint employment relationship to assist the regulated community in complying with the Fair Labor Standards Act.

Statement of Need:

The majority of 29 CFR part 791 was promulgated sixty years ago.  The Department believes that changes in the 21st century workplace are not reflected in its current regulatory framework.  Consistent with the Administration’s priorities to enact administrative reforms and provide clarity to enhance compliance, the Department is considering changes to its regulations concerning joint employment under the Fair Labor Standards Act.  These proposed changes are intended to provide clarity to the regulated community and thereby enhance compliance.  The Department believes the proposed changes will help to provide more uniform standards nationwide.

Summary of the Legal Basis:

This regulation is authorized by sections 3(d), (e), and (g) of the Fair Labor Standards Act, 29 U.S.C. 203(d), (e), and (g).  Part 791 constitutes the official interpretation of the Department with respect to joint employment.

Alternatives:

Alternatives will be developed in considering any proposed revisions to the current regulations. The public will be invited to provide comments on any proposed revisions and possible alternatives.

Anticipated Costs and Benefits:

The Department will prepare estimates of the anticipated costs and benefits associated with the proposed rule.

Risks:

This action does not affect public health, safety, or the environment.