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2nd Circuit Kills Trump Joint Employer Rule, Dismisses Lawsuit

Oct. 29, 2021, 8:02 PM

A federal appellate panel delivered the death knell to the Trump administration’s joint employment regulation, an employer-friendly interpretation that shielded businesses from sharing liability over an affiliated company’s payroll practices.

The order by the U.S. Court of Appeals for the Second Circuit, released Friday, clears the Biden administration to set policy on one of the most contentious issues in workplace law—joint employment—which has deep ramifications in multiple industries, such as franchised fast-food and hotel chains.

The Second Circuit panel determined that the U.S. Department of Labor’s July move to rescind the Trump rule was sufficient to moot a legal challenge ...