The US Department of Labor announced on Sunday a final rule to update regulations interpreting the joint employer status under the Fair Labor Standards Act.

It had proposed the rule last April.

The final rule includes a four-factor test for determining joint-employer status where an employee performs work for one employer and that work simultaneously benefits another entity or individual. Those four factors are whether the joint employer:

1. Hires or fires the employee.
2. Supervises and controls the employee’s work schedule or conditions of employment to a substantial degree.
3. Determines the employee’s rate and method of payment.
4. Maintains the employee’s employment records.

The final rule also clarifies when additional factors may be relevant to a determination of FLSA joint employer status and identifies business models, contractual agreements with the employer, and business practices that do not make joint employer status more or less likely.

The final rule will take effect March 16, 2020.

Here’s a link to frequently asked questions.