The Department of Labor (DOL) has released proposed regulations concerning joint employment status under the Fair Labor Standards Act (FLSA). Legislation expanding apprenticeship programs has been introduced in the Senate. DOL announced that it will be working with a contractor to expand the integration of artificial intelligence (AI) into apprenticeship programs. DOL has updated financial education information and guidance for disabled workers. 

DOL Proposes Joint Employment Rule – The Department of Labor has issued a proposed rule concerning joint employment status under the Fair Labor Standards Act (FLSA) and the Family and Medical Leave Act (FMLA). According to the DOL, these regulations are "necessary to promote clarity and uniformity in the Department's nationwide enforcement of federal wage and hour law." Acting Secretary of Labor Keith Sonderling stated, "A clear standard on joint employment would give businesses more confidence to invest in partnerships, help employees understand their rights, and make the department's investigations more efficient." Comments on the proposed regulations are due by June 22nd. 

During the first Trump Administration, the DOL issued proposed joint employment regulations in 2020. The rule was challenged, and the U.S. District Court for the Southern District of New York vacated most of the 2020 rule in September 2021. Those regulations were rescinded by the Biden Administration, leading to the dismissal of the appeal of the District Court's ruling. The Biden Administration did not issue replacement regulations during its tenure. 

The proposed regulations distinguish between vertical and horizontal joint employment. The DOL describes vertical joint employment as "an arrangement in which an employee is jointly employed by two or more employers that simultaneously benefit from the employee's work." Under this scenario, the employee works hours for at least one employer, and the question is whether another person that also benefits from the work is a joint employer of the employee. This situation might occur with contractors and subcontractors, or staffing agencies and their clients. 

The proposed regulations include four factors to determine whether a vertical joint employment situation exists. These four factors are "whether the other person or entity (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 DOL advised that these four factors "weigh the economic reality of the potential joint employer's control, direct or indirect, over the employee and would provide needed clarity and uniformity to the determination." DOL notes that additional factors may be considered where "material and appropriate." 

The proposed regulations describe horizontal joint employment as situations where an employee works separate hours for two or more joint employers in the same workweek and "the employers are sufficiently associated with each other with respect to the employment of the employee such that they are joint employers." Where a joint employment relationship is found to exist, each employer is "jointly and severally liable with any other joint employers…for all of the hours worked by the employee in that workweek." The proposal details three instances where employers will be "sufficiently associated": (1) there is an arrangement between them to share the employee's services; (2) one employer is acting directly or indirectly in the interest of the other employer in relation to the employee; or (3) they share control of the employee, directly or indirectly, by reason of the fact that one employer controls, is controlled by, or is under common control with the other employer. The DOL concludes that franchising does not necessarily result in joint employment under the FLSA. 

Senate Legislation Expanding Apprenticeship Programs Introduced – Senator Bill Cassidy (R-LA), chairman of the Senate Health, Education, Labor, and Pensions (HELP) Committee, introduced legislation designed to expand apprenticeship opportunities. The Apprenticeship Data Value Improvements to Create Employment Act would make it easier to determine what is working and would establish consistent guidelines for the federal and state governments to register prospective apprenticeship programs. Senator Cassidy stated, "Let's make apprenticeships more enticing to employers, helping to build a workforce for the future." The bill would establish an advisory committee that would propose improvements to how the Department of Labor tracks apprenticeship data, focusing on pay, retention, and program completion data designed to help program sponsors replicate proven apprenticeship program models. The bill has been referred to the Senate HELP Committee. 

The Department of Labor (DOL) announced that it will be working with a contractor to increase the integration of artificial intelligence (AI) skills into registered apprenticeship programs. The Employment and Training Administration is looking to expand AI-related training, modernize apprenticeship programs, and strengthen the talent pipeline in emerging and critical industries. According to DOL, this initiative focuses on the following national priorities: "embedding AI training, tools, and curricula into existing apprenticeship programs, including AI in roles that directly build, manage, or apply AI technologies, and strengthening workforce pipelines in areas like data centers, telecommunications, and advanced manufacturing." 

The Department of Labor advised that April 27–May 2nd is National Apprenticeship Week, with a theme of "America at Work: Making America Skilled Again through Registered Apprenticeship." According to the DOL, the "theme reflects the prominence of Registered Apprenticeships as a key strategy to ensure the American worker is equipped for the skilled jobs of today and tomorrow." Acting Secretary of Labor Keith Sonderling stated, "National Apprenticeship Week offers us all a chance to celebrate the vital role that Registered Apprenticeship plays in lifting up American workers by offering them marketable skills." 

DOL Updates Financial Education Information and Guidance for Disabled Workers – The Department of Labor updated its online resource offering financial education and guidance to assist disabled workers in achieving economic mobility and independence. The toolkit, "Secure Your Financial Future: A Toolkit for Individuals with Disabilities," has been modified to add a new section geared toward service providers, direct support professionals, and family members. Assistant Secretary for Disability Employment Policy Julie Hocker stated, "The updates to the…toolkit provide vital resources that empower disabled workers to make informed financial decisions as they pursue rewarding work opportunities." 

The toolkit contains guidance designed to assist disabled workers in attaining financial wellness throughout the employment lifecycle, including preparing for a job, starting a job, maintaining a job, changing or leaving a job, and retiring. According to the DOL, updates to the toolkit include frequently asked questions about working with legal guardians or representative payees, financial planning tools and worksheets, quick reference guides on money management, disability benefits, and other topics, and resources to support discussions concerning saving, budgeting, and financial goal setting. 

Neil Reichenberg is the former executive director of the International Public Management Association for Human Resources. He is an attorney, a frequent writer and speaker on public policy and human resource issues, and an adjunct faculty member at George Mason University. For questions or additional information, contact Reichenberg at [email protected].