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In this Notice of Proposed Rulemaking, the Department proposed to update and clarify the contours of the joint employer relationship status under the Fair Labor Standards Act to assist employers in complying with the Act.

Statement of Need:

29 CFR part 791 has not been meaningfully revised since its promulgation over 60 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 employer status 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 promote greater uniformity among court decisions nationwide.

Summary of the Legal Basis:

This regulation is authorized by the Fair Labor Standards Act, 29 U.S.C. 201-219; Reorganization Plan No. 6 of 1950; and Secretary’s Order 01-2014 (Dec. 19, 2014), 79 FR 77527.  Part 791 constitutes the official interpretation of the Department with respect to joint employer status under the Act.

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 prepared estimates of the anticipated costs and benefits associated with the proposed rule.

Risks:

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