Joint Employer Rule Withdrawn, Restoring 2020 Standard

Change reverses Biden administration policy, providing clearer guidance for employers and workers

Published on Feb. 27, 2026

Got story updates? Submit your updates here. ›

The joint employer rule has been withdrawn, restoring the 2020 federal standard governing how businesses are classified under labor law. Education and Workforce Committee Chairman Tim Walberg announced the change, calling it a shift away from the Biden administration's rule and a return to the framework adopted in 2020.

Why it matters

The joint employer rule determines when two businesses can be held jointly responsible for labor violations and collective bargaining obligations. Supporters of the withdrawal argue it reduces federal oversight and compliance burdens, while critics of the 2020 standard have previously said it narrows accountability in franchise and contract work arrangements.

The details

Walberg said the previous rule created regulatory uncertainty for franchises and small businesses, and that restoring the earlier standard provides clearer guidance for employers and workers. Federal agencies are expected to implement the change in accordance with labor regulations.

  • On February 27, 2026, the joint employer rule was withdrawn.

The players

Tim Walberg

Education and Workforce Committee Chairman.

Got photos? Submit your photos here. ›

The takeaway

This change reverses the Biden administration's joint employer rule, restoring the 2020 standard and providing clearer guidance for employers and workers, though it may also reduce accountability in some work arrangements.