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B-333474 Aug 10, 2021 1 (2021-08-10)

handle is hein.gao/gaomdd0001 and id is 1 raw text is: 1Oo_       U.S. GOVERNMENT ACCOUNTABILITY OFFICE
A Century of Non-Partisan Fact-Based Work
441 G St. N.W.
Washington, DC 20548
B-333474
August 10, 2021
The Honorable Patty Murray
Chair
The Honorable Richard Burr
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: Rescission of Joint Employer Status
Under the Fair Labor Standards Act Rule
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, Wage and Hour Division (Department) entitled
Rescission of Joint Employer Status Under the Fair Labor Standards Act Rule (RIN: 1235-
AA37). We received the rule on July 30, 2021. It was published in the Federal Register as a
final rule, rescission, on July 30, 2021. 86 Fed. Reg. 40939. The effective date is
September 28, 2021.
According to the Department, the final rule finalizes the Department's proposal to rescind the
final rule titled Joint Employer Status Under the Fair Labor Standards Act, which was
published on January 16, 2020, and took effect on March 16, 2020. 85 Fed. Reg. 2820. The
Department stated the final rule removes the regulations established by the earlier rule.
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 Department informed us the House of
Representatives received the final rule on August 2, 2021, and that the Senate received it on
August 6, 2021. Email from Compliance Specialist, Department to Senior Staff Attorney, GAO
(Aug. 6, 2021). The final rule was published on July 30, 2021. 86 Fed. Reg. 40939. The final
rule has a stated effective date of September 28, 2021. Therefore the final rule does not have
the required 60-day delay in its effective date.
Enclosed is our assessment of the Department's compliance with the procedural steps required
by section 801(a)(1)(B)(i) through (iv) of title 5 with respect to the rule. If you have any
questions about this report or wish to contact GAO officials responsible for the evaluation work

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