--- title: Everything You Need to Know About the New DOL Joint Employer Ruling description: The U.S. Department of Labor (DOL) has limited joint employer liability under the Fair Labor Standards Act (FLSA). This ruling outlines the circumstances under which more than one business can be held liable for FLSA violations. image: https://blog.populusgroup.com/hubfs/DOL%20Joint%20Employer%20Final%20550.jpg --- [![PopulusGroup_Plane_Logo_rgb-01](https://blog.populusgroup.com/hs-fs/hubfs/PG%20Registered%20Logos/PopulusGroup_Plane_Logo_rgb-01.png?width=1966&height=1530&name=PopulusGroup_Plane_Logo_rgb-01.png "PopulusGroup_Plane_Logo_rgb-01")](https://www.populusgroup.com/en) - [Employers](https://www.populusgroup.com/en/workforce-solutions) - [Careers](https://www.populusgroup.com/en/job-seeker) - [Contractors](https://www.populusgroup.com/en/contractor-resources) - [Blog](https://blog.populusgroup.com) - [About](https://www.populusgroup.com/en/about) - [Impact](https://www.populusgroup.com/en/impact) - [Work With Us](https://www.populusgroup.com/en/contact) [The PG Blog](https://blog.populusgroup.com) Search Search this site on Google Search Google Subscribe ### Subscribe to Email Updates Select Category - [Industry (52)](https://blog.populusgroup.com/topic/industry) - [Diversity (44)](https://blog.populusgroup.com/topic/diversity) - [Climber Stories (31)](https://blog.populusgroup.com/topic/climber-stories) - [Community (28)](https://blog.populusgroup.com/topic/community) - [Foreign National Talent Management (26)](https://blog.populusgroup.com/topic/foreign-national-talent-management) - [Compliance (25)](https://blog.populusgroup.com/topic/compliance) - [Leadership (25)](https://blog.populusgroup.com/topic/leadership) - [Staffing and Recruiting (24)](https://blog.populusgroup.com/topic/staffing-and-recruiting) - [Contingent Workforce Trends (21)](https://blog.populusgroup.com/topic/contingent-workforce-trends) - [Careers (16)](https://blog.populusgroup.com/topic/careers) - [Military Veterans (15)](https://blog.populusgroup.com/topic/military-veterans) - [Legislation (13)](https://blog.populusgroup.com/topic/legislation) - [Independent Contractor Compliance (ICC) (12)](https://blog.populusgroup.com/topic/independent-contractor-compliance-icc) - [Personal Development (12)](https://blog.populusgroup.com/topic/personal-development) - [Professional Development (10)](https://blog.populusgroup.com/topic/professional-development) - [Company Culture (9)](https://blog.populusgroup.com/topic/company-culture) - [PG Celebrates (8)](https://blog.populusgroup.com/topic/pg-celebrates) - [Managed Service Provider (MSP) (7)](https://blog.populusgroup.com/topic/managed-service-provider-msp) - [Mental Health (5)](https://blog.populusgroup.com/topic/mental-health) - [Pay It Forward (5)](https://blog.populusgroup.com/topic/pay-it-forward) - [Payroll Services (5)](https://blog.populusgroup.com/topic/payroll-services) - [Sustainability (3)](https://blog.populusgroup.com/topic/sustainability) - [AI (2)](https://blog.populusgroup.com/topic/ai) - [Contractor Experience (1)](https://blog.populusgroup.com/topic/contractor-experience) - [Populus Group (70)](https://blog.populusgroup.com/author/populus-group) - [Bobby Herrera (34)](https://blog.populusgroup.com/author/bobby-herrera) - [Whitney Barton (25)](https://blog.populusgroup.com/author/whitney-barton) - [Samantha Heilman (15)](https://blog.populusgroup.com/author/samantha-heilman) - [Brandon Wischmeyer (14)](https://blog.populusgroup.com/author/brandon-wischmeyer) - [Cynthia Waddell (10)](https://blog.populusgroup.com/author/cynthia-waddell) - [Ejay Oravecz (8)](https://blog.populusgroup.com/author/ejay-oravecz) - [Austin McCool (8)](https://blog.populusgroup.com/author/austin-mccool) - [Jen Pasquier (6)](https://blog.populusgroup.com/author/jen-pasquier) - [Jackie McCool (6)](https://blog.populusgroup.com/author/jackie-mccool) - [Brandon Byrd (5)](https://blog.populusgroup.com/author/brandon-byrd) - [Tom Mehl (5)](https://blog.populusgroup.com/author/tom-mehl) - [Briana Walker and Kristine Baker (4)](https://blog.populusgroup.com/author/briana-walker-and-kristine) - [Sebastian Puravet (4)](https://blog.populusgroup.com/author/sebastian-puravet) - [Jaylynn Hogeboom (3)](https://blog.populusgroup.com/author/jaylynn-hogeboom) - [Kathryn Crimmins (3)](https://blog.populusgroup.com/author/kathryn-crimmins) - [Danielle Hein (3)](https://blog.populusgroup.com/author/danielle-hein) - [Taniesha Thomas & Tiasha Holcomb (3)](https://blog.populusgroup.com/author/tanisha-thomas-tiasha-holcomb) - [Raul Ramos (3)](https://blog.populusgroup.com/author/raul-ramos) - [Donna Morris (3)](https://blog.populusgroup.com/author/donna-morris) - [DE&I Council (3)](https://blog.populusgroup.com/author/diversity-inclusion-council) - [Rosemarie Fontela (3)](https://blog.populusgroup.com/author/rosemarie-fontela) - [Brooke Stovall (2)](https://blog.populusgroup.com/author/brooke-stovall) - [Eric Schmitz (2)](https://blog.populusgroup.com/author/eric-schmitz) - [Jessica Bitell (2)](https://blog.populusgroup.com/author/jessica-bitell) - [Kyle Heilman (2)](https://blog.populusgroup.com/author/kyle-heilman) - [Mario L. Lambert II (2)](https://blog.populusgroup.com/author/mario-l-lambert-ii) - [Dr. Jenna Rowen (2)](https://blog.populusgroup.com/author/dr-jenna-rowen) - [Liz Waters (2)](https://blog.populusgroup.com/author/liz-waters) - [Maxwell Barry (2)](https://blog.populusgroup.com/author/maxwell-barry) - [Megan Mallie (2)](https://blog.populusgroup.com/author/megan-mallie) - [Taniesha Thomas (2)](https://blog.populusgroup.com/author/taniesha-thomas) - [Derek Kimmerle (2)](https://blog.populusgroup.com/author/derek-kimmerle) - [Shelby Gerschick (1)](https://blog.populusgroup.com/author/shelby-gerschick) - [Jennifer Stevens (1)](https://blog.populusgroup.com/author/jennifer-stevens) - [Leah Koskinen (1)](https://blog.populusgroup.com/author/leah-koskinen) - [Alyse Nilson (1)](https://blog.populusgroup.com/author/alyse-nilson) - [Jen Colburn (1)](https://blog.populusgroup.com/author/jen-colburn) - [Jim Mann (1)](https://blog.populusgroup.com/author/jim-mann) - [Ejay Oravecz & Austin McCool (1)](https://blog.populusgroup.com/author/ejay-oravecz-austin-mccool) - [Joy Goberville (1)](https://blog.populusgroup.com/author/joy-goberville) - [Bismah Khan (1)](https://blog.populusgroup.com/author/bismah-khan) - [Irene Lawrence (1)](https://blog.populusgroup.com/author/irene-lawrence) - [Ron Lippitt (1)](https://blog.populusgroup.com/author/ron-lippitt) - [Andrea Pulkkinen (1)](https://blog.populusgroup.com/author/andrea-pulkkinen) - [Ed Herrera (1)](https://blog.populusgroup.com/author/ed-herrera) - [Pride Alliance ERG (1)](https://blog.populusgroup.com/author/pride-alliance-erg) - [Joanna Esparza (1)](https://blog.populusgroup.com/author/joanna-esparza) - [Nicole Stevens-Delgado (1)](https://blog.populusgroup.com/author/nicole-stevens-delgado) - [Billy Alfonsi (1)](https://blog.populusgroup.com/author/billy-alfonsi) - [Brandon Bates (1)](https://blog.populusgroup.com/author/brandon-bates) - [Judy Yang (1)](https://blog.populusgroup.com/author/judy-yang) - [Pamela Warchuck (1)](https://blog.populusgroup.com/author/pamela-warchuck) - [Rosemarie Fontela & Denis Kenny (1)](https://blog.populusgroup.com/author/rosemarie-fontela-denis-kenny) - [Brookie Clark (1)](https://blog.populusgroup.com/author/brookie-clark) - [Darwin Morgan (1)](https://blog.populusgroup.com/author/darwin-morgan) - [Bunker Labs (1)](https://blog.populusgroup.com/author/bunker-labs) - [Joy Bartolome (1)](https://blog.populusgroup.com/author/joy-bartolome) - [Josh Hauser (1)](https://blog.populusgroup.com/author/josh-hauser) - [Karen Philbrick (1)](https://blog.populusgroup.com/author/karen-philbrick) - [Helen Konrad (1)](https://blog.populusgroup.com/author/helen-konrad) - [Michelle Nyhart & Ejay Oravecz (1)](https://blog.populusgroup.com/author/michelle-nyhart-ejay-oravecz) - [The Cultures Connected ERG (1)](https://blog.populusgroup.com/author/cultures-connected-erg) - [Derrick Workman (1)](https://blog.populusgroup.com/author/derrick-workman) - [Frank DeCastro (1)](https://blog.populusgroup.com/author/frank-decastro) - [Tim Zeches (1)](https://blog.populusgroup.com/author/tim-zeches) - [Izabela Miklas (1)](https://blog.populusgroup.com/author/izabela-miklas) - [Justin Stewart (1)](https://blog.populusgroup.com/author/justin-stewart) - [Stephanie DeStefanis (1)](https://blog.populusgroup.com/author/stephanie-destefanis) - [Dominic Charleston (1)](https://blog.populusgroup.com/author/dominic-charleston) - [Cheryl Longo (1)](https://blog.populusgroup.com/author/cheryl-longo) - [Dorian Cast (1)](https://blog.populusgroup.com/author/dorian-cast) - [Sydnie Chy (1)](https://blog.populusgroup.com/author/sydnie-chy) - [Josh Schreck (1)](https://blog.populusgroup.com/author/josh-schreck) - [Jacob Houston (1)](https://blog.populusgroup.com/author/jacob-houston) - [Jillian Seidl (1)](https://blog.populusgroup.com/author/jillian-seidl) - [Matt King (1)](https://blog.populusgroup.com/author/matt-king) - [Marcella Cheng (1)](https://blog.populusgroup.com/author/marcella-cheng) - [David Kaggwa (1)](https://blog.populusgroup.com/author/david-kaggwa) - [Lance Schroder (1)](https://blog.populusgroup.com/author/lance-schroder) - [Stephanie Hill (1)](https://blog.populusgroup.com/author/stephanie-hill) - [Megan Anderson (1)](https://blog.populusgroup.com/author/megan-anderson) - [Michelle Fedorkiw (1)](https://blog.populusgroup.com/author/michelle-fedorkiw) - [Kimberly Mills (1)](https://blog.populusgroup.com/author/kimberly-mills) - [Denis Kenny (1)](https://blog.populusgroup.com/author/denis-kenny) - [Tim Wang (1)](https://blog.populusgroup.com/author/tim-wang) # Everything You Need to Know About the New DOL Joint Employer Ruling [![Brandon Wischmeyer](https://blog.populusgroup.com/hubfs/Brandon%20Wischmeyer-200px.jpg)](https://blog.populusgroup.com/author/brandon-wischmeyer) [by Brandon Wischmeyer](https://blog.populusgroup.com/author/brandon-wischmeyer) ![DOL Joint Employer Final 550](https://blog.populusgroup.com/hs-fs/hubfs/DOL%20Joint%20Employer%20Final%20550.jpg?width=550&name=DOL%20Joint%20Employer%20Final%20550.jpg) *Joint-employer*. This term can cause some heartburn for our clients and anyone using a third-party employer of record for their workforce. The lines can be blurry, and the previous ruling interpretation made it much easier to pursue action against our clients in the case of FLSA violations. But this new ruling aims to simplify and clarify the lines for employers and gives our clients a bit more shield from that risk.   ## Joint Employer Summary The U.S. Department of Labor (DOL) has limited joint employer liability under the Fair Labor Standards Act (FLSA). This ruling outlines the circumstances under which more than one business can be held liable for FLSA violations. It adopts the “**four-factor balancing test**” from DOL's proposed version of the rule, while also clarifying that **an employee's "economic dependence" on an employer does not determine whether it is a joint employer**. The rule also outlines other scenarios that do not make joint employer status more or less likely under the FLSA. The four-factor balancing test lists criteria to meet for a company to be considered an employer and held accountable for FLSA compliance.   ### The four-factor test criteria are as follows: The employer: 1. **Hires or fires** the employee; 2. **Supervises and controls** the employee’s work **schedule or conditions of employment** to a substantial degree; 3. Determines the employee’s **rate and method of payment**; and 4. **Maintains** the employee’s **employment records**. ## The Key Take-Aways The biggest takeaway is that all parties involved should be mindful of Federal, State, and Local rules regarding wage and hour laws. Populus Group will continue to monitor any changes and updates and keep everyone aware.   ## The Potential Impact In the past, the line was much blurrier, and it was much easier for the government to go after our clients for any wage and hour claims made by our contractors (i.e. Populus Group and the client would be held jointly responsible for the claims). Now based on the criteria listed, Populus Group would primarily be on the hook and our clients essentially have a legal shield around them based on wage and hour claims. This article should not be used as legal advice. For best reference, please use the [DOL's Fact Sheet](https://www.dol.gov/agencies/whd/flsa/2020-joint-employment/fact-sheet). Don't leave yourself vulnerable to potential expensive exposures!  Connect with us for tips and guidance to decrease your risk.   ### Want to learn more? *Submit a couple details and one of our experts will connect with you within 2 business days.* ## Leave a comment [![Brandon Wischmeyer](https://blog.populusgroup.com/hubfs/Brandon%20Wischmeyer-200px.jpg)](https://blog.populusgroup.com/author/brandon-wischmeyer) Written by [Brandon Wischmeyer](https://blog.populusgroup.com/author/brandon-wischmeyer) Brandon is a Corporate Compliance Specialist at Populus Group. You can find him reviewing FLSA requests to keep our customers up-to-date on all the labor laws across the US. He's a busy dude. When he's not at work, Brandon likes to travel, hike, and go to the beach with his Goldendoodle, Dakota. **Corporate Headquarters** Populus Group, Troy Headquarters 3001 West Big Beaver Road Suite 608 Troy, MI 48084 [248-712-7900](tel:248-712-7900) [opportunities@populusgroup.com](mailto:opportunities@populusgroup.com) **Employment Verification Requests\*** [248-928-0530](tel:248-928-0530) [voe@populusgroup.com](mailto:voe@populusgroup.com) [Employer Services](http://www.populusgroup.com/en/workforce-solutions)[Begin Your Job Search](http://www.populusgroup.com/en/job-seeker) ©2023 Populus Group [Privacy Policy](http://www.populusgroup.com/en/privacy-policy)[Terms & Conditions](http://www.populusgroup.com/en/terms-conditions)[Site Map](http://www.populusgroup.com/en/sitemap) [![](https://blog.populusgroup.com/hubfs/Images/blog/icon-social-fb%20png.png?h=28&la=en&w=28)](https://www.facebook.com/populusgroup) [![](https://blog.populusgroup.com/hubfs/Images/blog/icon-social-twitter%20png.png?h=28&la=en&w=28)](https://twitter.com/populusgroup) [![](https://blog.populusgroup.com/hubfs/Images/blog/icon-social-instagram%20png.png?h=28&la=en&w=28)](https://www.instagram.com/populusgroup/) [![](https://blog.populusgroup.com/hubfs/Images/blog/icon-social-li%20png.png?h=28&la=en&w=28)](https://www.linkedin.com/company/70117/) [![](https://blog.populusgroup.com/hubfs/Images/blog/icon-social-glassdoor%20png.png?h=28&la=en&w=28)](https://www.glassdoor.com/Overview/Working-at-Populus-Group-EI_IE259242.11,24.htm) [![](https://blog.populusgroup.com/hubfs/Images/blog/icon-social-youtube%20png.png?h=28&la=en&w=39)](https://www.youtube.com/channel/UC-O9v1hz-Q4OW0Ze0b9O_sg) [![](https://blog.populusgroup.com/hubfs/Images/blog/icon-social-gplus%20png.png?h=28&la=en&w=28)](https://plus.google.com/u/0/102588349136181669410) ![](https://blog.populusgroup.com/hubfs/Images/blog/icon-top%20png.png?h=33&la=en&w=33)