Labor Department 'Joint Employer' Rule Struck Down

Law360 (September 8, 2020, 4:23 PM EDT) -- A New York federal judge on Tuesday struck down most of a U.S. Department of Labor rule limiting when multiple businesses are liable to the same worker under federal wage law, removing a key plank of the Trump administration's workplace policy platform.

In issuing its January "joint employer" rule, the U.S. Department of Labor "failed to adequately justify its departure from its prior interpretations," a federal judge said Tuesday.

U.S. District Judge Gregory Woods said the U.S. Department of Labor violated federal rulemaking norms with its "joint employer" rule, granting summary judgment to a New York-led coalition of states that had...

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