The U.S. Department of Labor (DOL) is set to publish a Notice of Proposed Rulemaking (NPRM) that would adopt a single joint-employer standard under the Fair Labor Standards Act (FLSA), Family and Medical Leave Act (FMLA), and Migrant and Seasonal Agricultural Worker Protection Act (MSPA). The proposal is more detailed than prior frameworks and would give employers greater clarity about what types of business arrangements would create “joint employer” liability. 

The proposed rule identifies two types of joint employment: vertical and horizontal. 

Horizontal joint employment
This applies where a worker has employment relationships with two or more employers that are sufficiently related to each other, such as affiliated entities, commonly owned operations, or coordinated management structures. The focus is on the relationship between the employers themselves. If they are sufficiently integrated, the employee’s hours may be aggregated and both entities may share liability. 

Vertical joint employment
This is the more consequential category for agriculture. It applies where a worker is formally employed by one entity, often a farm labor contractor, but is economically dependent on another business, such as a grower or agricultural association. 

The proposed rule outlines a four-factor test to assess vertical joint employment, focusing on the “economic reality” of the relationship: 

1. Control: The degree to which the potential joint employer directs, supervises, or controls the work, directly or indirectly. 
2. Supervision and working conditions: Whether the potential joint employer determines schedules, assignments, or working conditions. 
3. Power over employment terms: Authority to hire, fire, discipline, or influence pay and employment conditions. 
4. Economic dependence: Whether the worker is economically dependent on the potential joint employer as a practical matter. 

The NPRM introduces a notable bright-line principle: where all four factors point in the same direction, there is a “substantial likelihood” that the joint-employer determination is correct, and additional considerations are unlikely to change the outcome. 

Key point for agriculture
The DOL reinforces that the ultimate inquiry is economic reality. In the farm labor context, the question is whether the worker is economically dependent on the grower or agricultural association, or instead on the farm labor contractor. This framing places significant weight on how labor arrangements function in practice, not just how they are structured on paper. 

What employers should do now
Agricultural employers should consider reviewing the proposed rule and assessing how their existing labor arrangements may be affected. The DOL is encouraging all interested parties to submit comments. Once published, the 60-day comment period closes at 11:59 p.m. ET on June 22, 2026, providing an opportunity to submit written data, views, or arguments that may shape the final rule.