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B-331767 1 (2020-02-03)

handle is hein.gao/gaobaeara0001 and id is 1 raw text is: GAOU.S. GOVERNMENT ACCOUNTABILITY OFFICE 441 G St. N.W. Washington, DC 20548 B-331767 February 3, 2020 The Honorable Lamar Alexander Chairman The Honorable Patty Murray Ranking Member Committee on Health, Education, Labor, and Pensions United States Senate The Honorable Robert C. Bobby Scott Chairman The Honorable Virginia Foxx Ranking Member Committee on Education and Labor House of Representatives Subject: Department of Labor, Wage and Hour Division: Joint Employer Status Under the Fair Labor Standards Act Pursuant to section 801 (a)(2)(A) of title 5, United States Code, this is our report on a major rule promulgated by the Department of Labor (the Department), Wage and Hour Division entitled Joint Employer Status Under the Fair Labor Standards Act (RIN: 1235-AA26). We received the rule on January 17, 2020. It was published in the Federal Register as a final rule on January 16, 2020. 85 Fed. Reg. 2820. The effective date of the rule is March 16, 2020. The final rule revises the Department's interpretation of joint employer status under the Fair Labor Standards Act. In the joint employer scenario where another person is benefitting from the employee's work, the Department is adopting a four-factor balancing test to assess whether the other person: (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; and (4) maintains the employee's employment records. Under the rule, no single factor is dispositive in determining joint employer status, and the appropriate weight to give each factor will vary depending on the circumstances. The Congressional Review Act (CRA) requires a 60-day delay in the effective date of a major rule from the date of publication in the Federal Register or receipt of the rule by Congress, whichever is later. 5 U.S.C. § 801(a)(3)(A). The final rule was published in the Federal Register on January 16, 2020. 85 Fed. Reg. 2820. The House of Representatives received the final rule on January 23, 2020. 166 Cong. Rec. H631 (daily ed. Jan. 28, 2020). The Congressional Record does not reflect the date of receipt by the Senate. The rule has a stated effective date of March 16, 2020. Therefore the final rule does not have the required 60-day delay in its effective date.

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