U.S. DOL Wage & Hour Division: Indianapolis District Office April Update
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Clear Regulations Make for Predictable and Less Costly Compliance |
The U.S. Department of Labor has announced a proposed rule to address joint employer status under three federal wage and hour laws- the Fair Labor Standards Act (FLSA), the Family and Medical Leave Act (FMLA), and Migrant and Seasonal Agricultural Worker Protection Act (MSPA). This rulemaking aims to provide great clarity and consistency in how joint employer status is determined under these laws, which would benefit workers, business courts, and the department’s enforcement personnel.
In particular, the analysis detailed in the proposed rule would:
- Set forth distinct standards for determining joint employer status in “vertical” and “horizontal” business relationships.
- Advise that horizontal joint employment exists when separate employers are sufficiently associated with respect to the employment of the same employee, but that business relationships which have little to do with the employment of specific employees are alone insufficient to establish joint employment.
- Adopt a four-factor analysis for use in every case of potential vertical joint employment.
- Advise that “reserved control” may be considered but is less indicative of vertical joint employment than exercised control.
- Exclude consideration of certain factors that are relevant only in assessing whether a worker is an employee or independent contractor.
- Exclude the relevance of certain general business models and business practices when determining joint employment.
- Provide examples illustrating how the proposed analysis would apply in certain factual circumstances.
Additional information about the substance of the proposed rule is available on our website.
Your feedback matters! Workers, employers, unions, and associations – your voice can shape the new rule. The department encourages all interested parties to submit comments on the Notice of Proposed Rulemaking, which has a 60-day comment period that closes at 11:59 p.m. ET on June 22, 2026.
Workers and employers can call the Wage and Hour Division with questions and requests for compliance assistance at its toll-free helpline, 866-4US-WAGE (487-9243). The agency’s PAID program offers employers an opportunity to self-report and resolve potential minimum wage and overtime violations under the FLSA, as well as certain potential violations under the FMLA.
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Salaried vs Hourly |
- Fact: Salary alone doesn’t determine overtime eligibility. Many salaried workers still qualify for overtime under FLSA based on duties and earnings. Most employees must receive time-and-one- half for hours worked over 40 in a workweek. Being paid a salary doesn’t automatically mean you are exempt. Misclassification can mean unpaid overtime. Learn more! Review overtime rules or contact us to get clarity about your rights and responsibilities.
- Fact Sheet #17A: Exemption for Executive, Administrative, Professional, Computer & Outside Sales Employees Under the FLSA
- Fact Sheet #17B: Exemption for Executive Employees Under the FLSA
- Fact Sheet #17C: Exemption for Administrative Employees Under the FLSA
- Fact Sheet #17D: Exemption for Professional Employees Under the FLSA
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Restaurants- Listen Up! |
Tip pooling rules depend on whether tip credit is taken.
Federal law covers:
🍽️ Eligible participants in tip pools
🍽️ When managers/supervisors can keep tips
🍽️ Minimum wage requirements
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Retaliation |
Workers are protected when they speak up. It is illegal to retaliate against workers who ask about pay, hours of work, filing a complaint, or cooperating with a Wage and Hour Division investigation. Learn more!
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✅ Employer Responsibilities |
Get it Right with PAID. When a restaurant owner found a pay issue, he turned to the PAID program to make it right. “I didn’t know I couldn’t share the tips with the manager. But I wanted to fix the problem.” He found the process straightforward, noting, “The PAID program is convenient and easy to understand.” By acting early, he ensured employees were paid correctly and avoided bigger issues. If you would like to discuss this further, please contact CORPS Lacey Houle at houle.lacey@dol.gov or 812-204-2934.
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📰 In the News |
➡️ $95K recovered in back wages for 33 cooks denied overtime pay at IHOP restaurants
➡️ $85K recovered in back wages for 36 workers after investigation finds tip pool violations at coffee bar, lounge near Austin
➡️ $122K recovered in back wages for 140 Mississippi HVAC workers
➡️ $78K recovered in back wages for 12 workers denied overtime pay by Austin buffet restaurant
➡️ Tulsa medical center denied nursing workers break time, violating the PUMP Act
