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Federal court says DOL joint-employer rule ‘arbitrary and capricious’; ABC says judge ‘got it wrong’

September 15, 2020

Woods’ decision in part focused on the four-factor test included in the final rule. The test considers whether the potential joint employer:

  • Hires or fires the employee (not whether the employer has the authority to hire or fire).
  • Supervises and controls the employee’s work schedule or conditions of employment to a substantial degree.
  • Determines the employee’s rate and method of payment.
  • Maintains the employee’s employment records.

The weight given to each factor varies according to circumstance, and the maintenance of employee records alone does not constitute a joint-employer relationship.

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