January 13, 2020

The U.S. Department of Labor revised its regulations regarding joint employer status under the FLSA.  The update becomes effective on March 16, 2020 so employers who believe they might fall under this new joint employer test, should pay attention.  After going 60 years without a meaningful change in the law, the United States District Court for the Northern District of California created a new four-factor test in Bonnette v. California Health and Welfare Agency.  This new balancing tests looks at whether the other entity hire or fires the employee, supervises and controls the employee’s work schedules or conditions of employment to a substantial degree, determines the employee’s rate and method of payment; and maintains the employee’s employment records.  While the intent of the new test was to simplify the determination of when joint employment exists, because this new test is a balancing test and no one factor is dispositive, a considerable amount of analysis will still be needed to determine whether your particular situation will qualify as joint employment.  If you fear that this new test may cause your company to become a joint employer, consult with our experienced employment law attorneys at myHRcounsel before the law goes into effect mid-March!