Members of IEC’s government affairs team participated in a roundtable for small business owners hosted by the Small Business Administration on May 28, 2026.
The roundtable brought together small business owners and advocates from all over the country to discuss a new Joint Employer Rule proposed by the U.S. Department of Labor.
Ben Brubeck, IEC lobbyist, and Jeremy Croft, IEC senior manager of government affairs, joined the roundtable to make sure the trade association’s views were represented as DOL considers regulatory changes that could impact electrical contracting businesses.
Brubeck and Croft applauded the proposed rule as a simplification of the version of the rule finalized in 2021 by the Biden administration. The rule moves away from broader theories of joint employment that created uncertainty for legitimate contracting relationships.
The IEC representatives, however, also stated concerns with various aspects of the proposal, including the treatment of reserved control and the consideration of additional open-ended factors.
Construction contracts routinely reserve authority regarding safety, scheduling, quality assurance, project coordination, and regulatory compliance. In many cases, contractors are required by law, regulation, or owner mandate to monitor subcontractor compliance in these areas.
Prime contractors often reserve this authority but rarely or never exercise direct control over another employer’s workforce, making reserved control distinct from joint employment.
“The final rule should make clear that contractual reservation of authority alone is insufficient to establish joint employer status,” said Brubeck. “Sitewide safety oversight and project coordination do not constitute supervision or control over employment conditions.”
Factors that may indicate a joint employment situation include if both employers:
- Hire or fire the employee.
- Supervise and control the employee’s work schedule or conditions of employment to a substantial degree.
- Determine the employee’s rate and method of payment.
- Maintain the employee’s employment records.
However, the proposed rule also indicates that there may be “additional factors” that may weigh in favor of joint employer status, although they are much less determinative than the main four. IEC is concerned that the proposal’s reliance on these factors could undermine the predictability the DOL seeks to create.
A highlight of the proposed rule is its recognition that participation in apprenticeship programs, association-sponsored workforce initiatives, and collaborative training arrangements should not weigh in favor of joint employer status.
“These cooperative workforce development efforts are essential to addressing the skilled labor shortage in the construction industry,” said Croft.
IEC seeks to ensure that compliance with the many federal requirements on small construction businesses does not unintentionally increase joint employer exposure for these businesses.
The public comment period for the proposed joint employer rule closes June 22. IEC encourages all interested members to submit comments by this time. Comments may be submitted here.
IEC members are encouraged to share specific concerns and solutions with the IEC government affairs team.