Edward M. Yennock, Member of the Firm in the Employment, Labor & Workforce Management and Litigation practices, in the firm’s New York office, authored an article in the Employee Relations Law Journal, titled “Time Is Money: A Quick Wage-Hour Tip on New York’s New Rule on Contractors’ Liability for Subcontractor Employee Wages.”

Following is an excerpt (see below to download the full version in PDF format):

The doctrine “joint employer” liability has received significant atten­tion in recent months. Under the Fair Labor Standards Act (“FLSA”), an employee may be deemed to have multiple employers – each of whom would be liable jointly for all aspects of FLSA compliance, includ­ing with regard to the payment of wages – in connection with his or her performance of the same work.

During the prior administration, the U.S. Department of Labor (“DOL”) issued a rule intended to standardize the parameters of joint employer liability. Months later, however, a federal court invalidated a portion of the new rule, holding that it impermissibly narrowed the scope of the joint employer doctrine. And, in July 2021, the DOL announced its outright repeal of the rule – i.e., whether a business might face joint employer liability will again be governed by the multi-factor “economic reality” test subject to varying judicial interpretations.

An important new development in New York law, however, essentially renders the concept of joint employment, and the standards that govern it, a moot point – at least in terms of wage liability in the construction industry.


Jump to Page

Privacy Preference Center

When you visit any website, it may store or retrieve information on your browser, mostly in the form of cookies. This information might be about you, your preferences or your device and is mostly used to make the site work as you expect it to. The information does not usually directly identify you, but it can give you a more personalized web experience. Because we respect your right to privacy, you can choose not to allow some types of cookies. Click on the different category headings to find out more and change our default settings. However, blocking some types of cookies may impact your experience of the site and the services we are able to offer.

Strictly Necessary Cookies

These cookies are necessary for the website to function and cannot be switched off in our systems. They are usually only set in response to actions made by you which amount to a request for services, such as setting your privacy preferences, logging in or filling in forms. You can set your browser to block or alert you about these cookies, but some parts of the site will not then work. These cookies do not store any personally identifiable information.

Performance Cookies

These cookies allow us to count visits and traffic sources so we can measure and improve the performance of our site. They help us to know which pages are the most and least popular and see how visitors move around the site. All information these cookies collect is aggregated and therefore anonymous. If you do not allow these cookies we will not know when you have visited our site, and will not be able to monitor its performance.