The U.S. Department of Labor’s Wage and Hour Division issued a new Joint Employer proposed rule last week, under the Fair Labor Standards Act (FLSA), the Family and Medical Leave Act (FMLA), and the Migrant and Seasonal Agricultural Worker Protection Act (MSPA). Argentum is reviewing the proposed rule and is engaging with our members and coalition partners to ensure the final framework provides clear, consistent, and workable guidance for employers. Public comments are due by June 22, 2026.
The rule suggests using different evaluation methods to distinguish between horizontal and vertical joint employment, since these business relationships vary significantly. It emphasizes that, in cases of vertical joint employment, what matters most is the actual control a potential joint employer exercises—not just the control they have but don’t use. Furthermore, the rule recommends ignoring factors used to determine employee status versus independent contractor status when assessing joint employment.
Argentum supports an approach that focuses on substantial, direct, and immediate control over employees, rather than indirect or theoretical control, to help reduce ambiguity and improve compliance for providers. As the senior living industry works to recruit and retain three million additional workers by 2040—part of the more than 20 million needed across long-term care—it is critical that federal policies support workforce stability and access to care without imposing unnecessary uncertainty or risk for employers.
Separately, the Department of Labor is under new management, with Keith Sonderling currently serving as Acting Secretary of Labor following the resignation of Lori Chavez-DeRemer last week. Sonderling serves as Deputy Secretary and has focused on deregulation, retirement security and compliance-driven workforce policies. He has been active in the Employee Benefits Security Administration (EBSA), moving this year to expand the ability of retirement plans to invest in private equity and cryptocurrency and to recalibrate EBSA’s enforcement on “bad actors” and “serious misconduct” like criminal abuse of benefits rather than minor technical errors. Sonderling has also been a vocal supporter of apprenticeships and upskilling.