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The U.S. Equal Employment Opportunity Commission (EEOC) enforces the Equal Pay Act.  This amendment explains the EEOC's interpretation of joint employer status under the Equal Pay Act, which incorporates the definitions of "employee," "employer," and "employ" under the Fair Labor Standards Act.

Statement of Need:

The Department of Labor (DOL), which enforces the bulk of the Fair Labor Standards Act (FLSA), recently issued regulations addressing joint employer status under the FLSA. In light of DOL's new regulations, the EEOC needs to clarify how it determines joint employer status under the EPA, which is part of the FLSA.  As employment relationships have become more complicated, the public needs clearer guidance on when an entity becomes a joint employer under the EPA.

Summary of the Legal Basis:

The EEOC was given responsibility for the equal pay provisions of the Fair Labor Standards Act by Reorganization Plan No. 1 of 1978, which prohibit discrimination on the basis of sex in the payment of wages by employers to employees in the same establishment.  Under the FLSA, the EEOC shares rulemaking authority with the Department of Labor.  The Department of Labor recently issued regulations addressing joint employer status under the FLSA.  

Alternatives:

The Commission will consider all alternatives offered by public commenters.

Anticipated Costs and Benefits:

The rulemaking will provide a net benefit to stakeholders by clarifying when an entity is subject to joint and several liability for an EPA violation.