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Clear Employment Rules: Who is an Employer in Collaborating Businesses?

This act clarifies when two or more companies are considered joint employers for the same employees. This impacts who is responsible for employment terms like wages, work schedules, or dismissals. These changes may affect employee rights and company obligations, especially in franchise or subcontracting arrangements.
Key points
A company is considered a joint employer only if it directly and actually exercises significant control over essential employment terms, such as hiring, firing, setting pay, or day-to-day supervision.
The new rules apply to labor relations laws (National Labor Relations Act) and minimum wage/overtime regulations (Fair Labor Standards Act).
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Additional Information
Print number: 117_S_3465
Sponsor: Sen. Marshall, Roger [R-KS]
Process start date: 2022-01-18