DOL Joint Employer Rule Threatens Trucking Subcontracting Model

The Department of Labor has released a proposed rule on joint employer status that could fundamentally reshape how trucking companies structure relationships with fleet contractors and owner-operators. The rule establishes a four-factor test—examining whether potential joint employers can hire/fire workers, control work schedules, set compensation, and maintain employment records—with profound implications for an industry built on subcontracting. If adopted, this framework could expose motor carriers to joint and several liability for wages, overtime, and penalties, requiring aggregation of hours worked across multiple employers for overtime calculations.

For supply chain professionals managing trucking operations or working with contract carriers, this proposal demands immediate attention. The rule revives an earlier Trump-era effort that was previously blocked by courts, but the latest iteration includes nuanced changes to how regulators will assess control, particularly regarding indirect or reserved authority over workers. The distinction between actual exercise of control and potential power matters significantly—meaning that even companies not micromanaging day-to-day operations could be deemed joint employers.

The broader implications extend beyond compliance costs. If implemented, this rule could force restructuring of freight forwarding and logistics vendor relationships across North America. Companies using staffing agencies, subcontractors, or franchise models must immediately audit how they exercise control over third-party workers, document their employment record practices, and assess liability exposure under a potentially stricter legal standard.