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New Joint Employer Rules Adopted by USDOL; Connecticut Employers Should Tread Carefully

The United States Department of Labor today released new regulations that dramatically change the existing rules on when two businesses are “joint employers” under federal wage and hour laws. I’ve previously discussed the changing rules in some prior posts here and here, so you should catch up there first if this is the first time you’re hearing about it. The new rules impact so-called “horizontal” and “vertical” joint employment situations, although the DOL has changed the use of the terminology a bit. In the horizontal situation, as now outlined by the USDOL rule, the employee has an employer but another person simultaneously benefits from that work. The other person is the employee’s joint employer “only if that person is acting directly or indirectly in the interest of the employer in relation to the employee. How do you know? The USDOL has set forth four factors on whether this other person: Hires or fires the employe...