New DOL joint-employer rule may limit your liability.

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The U.S. Department of Labor issued a new ruling on Jan. 12 that tightens the definition of what constitutes a "joint employer" under the Fair Labor Standards Act. This makes it less likely that more than one entity can be held liable for the same wage violations, as long as the company avoids day-to-day oversight of their partners' employment decisions. The rules say determining joint-employer status depends on balancing whether an entity:

* Hires or fires an employee.

* Supervises and controls the employee's work schedule or conditions of employment to a substantial degree.

* Determines the worker's rate and method of payment.

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