“DOL proposes new ‘vertical’ and ‘horizontal’ joint employment rule”

Robert Boonin was quoted in the International Employment Lawyer article, “DOL proposes new ‘vertical’ and ‘horizontal’ joint employment rule.” The article outlines the U.S. Department of Labor’s proposed joint employment rule, which distinguishes between “vertical” and “horizontal” relationships to clarify when multiple employers can be held liable under laws like the FLSA, FMLA, and MSPA, aiming to reduce litigation and create more consistent standards across jurisdictions. It explains that vertical relationships focus on the degree of control an employer has over a worker (using a four-factor test), while horizontal relationships examine connections between employers sharing a worker, though legal uncertainty remains as courts may apply stricter or varying standards.

Boonin notes that while the horizontal test largely reflects existing court approaches, the vertical standard could be more impactful and beneficial for franchisors and contractors, but its flexibility—allowing courts to consider broader “economic realities”—means outcomes will depend heavily on how it is applied, emphasizing that the rule may simplify analysis only if courts choose to adopt it.