Federal labor regulations continue to shape contractual relationships across the construction industry. The Independent Electrical Contractors (IEC) said it generally supports the U.S. Department of Labor's proposed 2026 Joint Employer Rule while recommending targeted revisions intended to improve regulatory clarity for construction employers.
The association participated in a Small Business Administration (SBA) roundtable and submitted comments during the federal rulemaking process.
IEC said the proposed rule represents an improvement over broader interpretations of joint employment by providing greater predictability for legitimate contracting relationships.
However, the association raised concerns about provisions addressing "reserved control" and the consideration of additional factors when determining joint employer status.
According to IEC, construction contracts commonly reserve authority related to safety, scheduling, quality assurance, project coordination, and regulatory compliance without requiring direct supervision of another employer's workforce. The association argues these contractual provisions should not, by themselves, establish joint employer liability.
The SBA submitted formal comments summarizing feedback received from small business stakeholders during its public roundtable.
The agency highlighted concerns regarding the treatment of reserved or indirect control and recommended that the Department of Labor clarify those provisions while limiting joint employer determinations to the rule's primary evaluation factors.
IEC said the SBA's comments closely aligned with recommendations presented by the association during the consultation process.
Joint employer regulations influence how contractors, subcontractors, staffing firms, and project owners structure contracts and manage workforce responsibilities. For construction owners and contractors, greater regulatory clarity can help reduce legal uncertainty while supporting compliance with federal labor requirements across increasingly complex project delivery models.
Source: IEC.
