NEWS | SBA Office of Advocacy Backs DOL Joint Employer Proposal, Echoing NSBA’s Call for Certainty
- NSBA
- Jun 24
- 2 min read
NSBA and SBA's Office of Advocacy support the DOL's proposed joint employer rule, arguing that a clear, consistent standard will help small businesses navigate labor compliance with confidence.
JUNE 24, 2026 | The U.S. Small Business Administration’s (SBA's) Office of Advocacy (Advocacy) recently voiced its support for the Department of Labor’s (DOL's) proposed joint employer rule, citing the need for a clear, nationwide standard that provides certainty for small businesses.
In comments submitted to the DOL, Advocacy endorsed the proposal’s focus on actual control over workers, rather than theoretical or reserved authority, a framework that would help employers better understand their responsibilities under the Fair Labor Standards Act, Family and Medical Leave Act, and Migrant and Seasonal Agricultural Worker Protection Act.
NSBA shares Advocacy’s position and recently submitted its own comments in support of the proposed rule. The proposal would establish a uniform federal standard for determining joint employer status and clarify that common business practices, such as franchising arrangements, staffing relationships, vendor agreements, quality-control requirements, and compliance with health and safety standards, do not automatically create joint employer liability.
For small businesses, clarity is critical to making hiring, contracting, and growth decisions with confidence.
Both NSBA and the Office of Advocacy have emphasized that years of changing interpretations and regulatory uncertainty have imposed significant costs on small businesses. By restoring a more predictable standard rooted in actual control, the proposed rule would help reduce compliance burdens and provide much-needed certainty for employers navigating complex business relationships.
NSBA will continue advocating for commonsense labor policies that support small-business growth while providing clear rules of the road for employers and workers alike.
