Joint Employment Reframed: DOL’s Proposed Rule Would Unify FLSA, FMLA, and MSPA Standards

On April 22, 2026, the Department of Labor’s (“DOL”) Wage and Hour Division (“WHD”) issued a Notice of Proposed Rulemaking that would restore federal regulatory guidance on joint employer status under the Fair Labor Standards Act (“FLSA”)—guidance that has been absent since July 2021. The Proposed Rule would reinstate a four-factor test for determining “vertical” joint employment and readopt a well-established criterion for “horizontal” joint employment. Critically, the Proposed Rule would also... By: Sheppard, Mullin, Richter & Hampton LLP