DOL Proposed Rule Improves Clarity on Joint Employer Standard, Says Advocate for Entrepreneurs

By at 1 April, 2019, 11:26 am


For Immediate Release

Washington, D.C. – Today, the U.S. Department of Labor (DOL) released a proposed rule on joint employer “to revise and clarify the responsibilities of employers and joint employers to employees in joint employer arrangements.”  Small Business & Entrepreneurship Council (SBE Council) president & CEO Karen Kerrigan welcomed the proposed rule, which offers a common-sense test along with a set of real-world examples and needed changes that will help to clarify areas of “employee control” for purposes of determining joint employer status.

“The DOL’s joint employer regulation has not been updated since 1958, but actions taken in recent years by government entities and agencies have caused great confusion, economic harm and uncertainty for small businesses.  The DOL has proposed a four-factor test, identified certain ‘economic dependence’ factors, and acknowledges standards of conduct and new business models where mutual collaboration but not employee control occur. The proposed rule is a welcome development and will bring needed certainty in business-to-business relationships and for the franchise industry,” said Kerrigan.

SBE Council will fully review the proposed rule with entrepreneurs and our small business members to see how it can be further refined, if needed.  There is a 60-day comment period on the proposal.

Related SBE Council Content:

Entrepreneurs and Small Businesses Welcome NLRB’s Joint Employer Rule, Media Release, September 2018.

Advocate for Entrepreneurs Supports NLRB Rulemaking to Fix Corrosive Joint Employer Standard, Media Release, May 2018.

Back from the Dead: NLRB’s Vague and Expansive Joint Employer Standard, Media Release, February 2018.

Contact: Karen Kerrigan

SBE Council is nonpartisan advocacy, research and education organization dedicated to protecting small business and promoting entrepreneurship. For 25 years, SBE Council has worked on and advanced a range of private sector initiatives and public policy issues to strengthen the ecosystem for strong startup activity and small business growth. Visit for additional information. Twitter: @SBECouncil


News and Media Releases