The U. S. Department of Labor (DOL) recently provided guidance on overtime pay for workers who are "jointly employed" by multiple businesses. In a letter responding to a concerned worker, the DOL clarified its interpretation of the Fair Labor Standards Act (FLSA) and how it applies to businesses that are "operationally integrated" (www. thehrdigest. com → dol-clarifies-overtime-considerations-for-workers-jointly-employed → ). This clarification is essential for businesses and employees to understand their rights and obligations under federal employment regulations.
The case in question involved a restaurant hostess who worked at two separate establishments owned by the same company: a first-floor restaurant and a second-floor members' club. Although she was paid the same rate at both locations, her combined hours often exceeded 40 hours per week, entitling her to overtime pay.
However, her employer argued that the two businesses operated as separate companies, and therefore, she was not eligible for overtime pay. The DOL disagreed, considering factors such as the shared kitchen, proximity, and similar menus to determine that the worker was jointly employed by both businesses.
A crystal clear understanding of state and federal employment regulations is essential for the operation of any business, and recent guidance on ...Alternative viewpoints and findings: See here
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