Earlier this month, the U.S. Department of Labor unveiled its Unified Agenda of Regulatory and Deregulatory Actions, which “provides the American people with a transparent look at regulations being considered by the Administration and ensures the public is engaged throughout the process.” This regulatory agenda, which is similar to a to-do list for the department, can be found here.
Twice a year, federal agencies are required by law to let businesses, workers, and the public know about which rules are being written or changed, when that might happen, how people can give input (usually through public comment periods), and why it matters. This semiannual agenda lists two items of interest for the staffing industry and their clients: joint employer status under the Fair Labor Standards Act and employee or independent contractor classification under the FLSA.
As many staffing firms know, the rules and regulations around joint employer status seem to go back and forth depending on what political party is occupying the White House. Most recently, a joint employer rule issued in 2020 which made it harder for a company to be considered a joint employer was rescinded in July 2021. According to the agenda, DOL is “considering a notice of proposed rulemaking to adopt regulations that would guide the Wage and Hour Division’s enforcement of joint employer liability.”
When it comes to independent contractors, the agenda notes that the current independent contactor rule is the subject of several ongoing legal challenges. According to the agenda, “the Department intends to rescind the 2024 Independent Contractor rule and is considering how it will proceed with examining the circumstances under which a worker should be classified as an employee or independent contractor for the purpose of federal wage and hour requirements.”
(Note: ASA Policy Edge is a new content feature designed to keep members ahead of legislative developments that could affect their business.)
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