On September 13, the Subcommittee on Workforce Protections held a hearing examining joint employer liability, which focuses on contract employees shared by more than one employer. During the hearing, business owners spoke how changes made to the joint employer standard during the Obama Administration created additional expenses. In July, Rep. Bradley Byrne (R-AL) introduced the Save Local Business Act (H.R. 3441) to clarify joint employer liability.
Earlier this year, on June 7, DOL rescinded an Obama-era reinterpretation of joint employer liability. The Obama-era reinterpretation, issued in January 2016, expanded joint employer liability to vertical joint employment relationships where a company exercises substantial indirect control over a worker that is economically dependent on the business. Historically, the joint employer standard only applied to horizontal joint employment relationships where a company had direct control over the work and employment conditions.