DOL Proposes Ditching Trump’s Narrowed Joint Employer Rule (1)

The U.S. Labor Department proposed rescinding a high-priority Trump administration regulation that would have limited scenarios in which multiple businesses share liability for wage violations, arguing that it served to undermine worker protections.

A proposed rule released Thursday seeks public comment on whether to repeal the Trump-era joint-employer rule—dealing a blow to franchisers such as McDonald’s Corp. that argue they’re not responsible for the workplace conditions of their franchisees.

The business community—particularly those major franchisers—championed the Trump administration’s narrowed joint-employment test for its departure from past practice. The Obama administration had increased government investigations and lawsuits that alleged a lead ...