Ted Hollis Offers Insight in SHRM Article on DOL’s Proposed Joint Employer Rule
Ted Hollis, an Indianapolis-based partner in Quarles & Brady’s Labor & Employment Group, provided insight for a SHRM article on the recent U.S. Department of Labor (DOL) proposed joint employer rule. The rule proposes a unified joint employer standard under the Fair Labor Standards Act, Family and Medical Leave Act, and Migrant and Seasonal Agricultural Worker Protection Act, the National Labor Relations Board, the U.S. Equal Employment Opportunity Commission and many state agencies all have different joint employer standards.
Hollis pointed out that the proposed rule’s impact on companies will center on how they manage relationships with staffing agencies, subcontractors and onsite vendors. Therefore, human resources professionals must scrutinize vendor and staffing agreements for provisions that reserve authority over hiring, firing, scheduling or pay. He also noted that even if the proposed rule is finalized, challenges will continue because the joint employer inquiry remains fragmented across multiple agencies and jurisdictions.
An excerpt below:
The practical impact of the DOL’s proposed rule centers on how companies manage relationships with staffing agencies, subcontractors, and onsite vendors, said Ted Hollis, an attorney with Quarles in Indianapolis. “The proposed rule treats reserved or contractual rights to control workers as relevant even if not exercised day to day, meaning HR professionals must scrutinize vendor and staffing agreements for provisions that reserve authority over hiring, firing, scheduling, or pay,” he said.
The NLRB’s 2026 joint employer rule requires a joint employer to possess and exercise substantial direct and immediate control over at least one essential term or condition of employment. This is a narrower standard than the DOL’s proposed rule because it requires actual exercise of control and does not credit reserved or indirect control, Hollis noted. Joint employers under the National Labor Relations Act (NLRA) must bargain with any union representing jointly employed workers and may be liable for unfair labor practices.
“Even if finalized, significant coordination-of-compliance challenges will persist because the joint employer inquiry remains fragmented across multiple federal agencies, 50 states, and numerous local jurisdictions,” Hollis said.
A single business relationship can be evaluated simultaneously under the DOL’s FLSA/FMLA/MSPA standard, the NLRB’s NLRA standard, and the EEOC’s Title VII standard. The outcome could differ under each because each applies a different test, he said.