DOL Issues Proposed Rule on Joint Employer Status

April 27, 2026

The U.S. Department of Labor’s Wage and Hour Division has announced a proposed rule to clarify joint employer status under the Fair Labor Standards Act, the Family and Medical Leave Act, and the Migrant and Seasonal Agricultural Worker Protection Act.

Joint employer rules can affect contractor and subcontractor relationships by making a contractor potentially responsible for a subcontractor’s workers if the contractor has enough control over their employment.

Through its proposal, the department aims to address the lack of federal regulatory guidance by establishing a single nationwide standard. The standard would draw on common themes in federal court decisions where possible and resolve major differences among circuit courts where they exist. The department says this approach would give employees and employers a clearer, more consistent understanding of when multiple employers share responsibility for protecting an employee’s wages and other rights.

NDA is reviewing the proposed rule and will be prepared to submit comments on behalf of the demolition industry.