DOL Can't Skirt States' Effort To Sink Joint Employer Rule

Law360 (June 2, 2020, 9:38 PM EDT) -- The U.S. Department of Labor must face claims by a coalition of Democratic state attorneys general that a recently finalized joint employer rule is unlawful, a New York federal judge has ruled, saying the states have standing because the regulation might sap them of tax revenue and hike enforcement-related costs.

U.S. District Judge Gregory Woods on Monday rejected a motion by the Labor Department to dismiss a suit lodged by 18 Democratic state attorneys general alleging that the agency's January final rule, which makes it harder for affiliated businesses to share liability for wage violations, flouted the Administrative Procedure Act and...

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