Damage Control: How Recent Changes to the FLSA and NLRA May Affect Your Status as a Joint Employer

6 Min Read By Jordan T. Benson, Esq.

In January 2020, the United States Department of Labor (USDL) announced a final ruling which updates the interpretation of “joint employer” status under the Fair Labor Standards Act (FLSA) effective March 16, 2020. For over 60 years, there had been no meaningful updates regarding joint employer status, leaving many franchisors and similarly situated parties wondering – is my entity liable as a joint employer for my franchisee’s/affiliate’s acts relating to employees? Finally, the USDL has helped shed some light on this issue.

Similarly, the National Labor Relations Board (NLRB) recently announced its final ruling that will amend the National Labor Relations Act (NLRA) – primarily, the definitions of “joint employer” and other key terms, and clarification of what constitutes exercising “direct and immediate control” (effective April 27, 2020).

How does 'joint employer' status come into play?Many employees who file claims against their employer for FLSA or…