Judge Shoots Down Part of DOL Joint Employer Rule

Sept. 9, 2020, 10:56 AM

The Trump administration’s initiative to narrow joint employer liability for minimum wage and overtime violations received a major blow from a federal judge, who struck down the most consequential aspect of the Labor Department regulation.

Overstepped Authority: Judge Gregory H. Woods of the U.S. District Court for the Southern District of New York held that DOL overstepped its regulatory authority in issuing the new standard for when multiple companies share liability for shorting workers on pay. The rule, which is strongly favored by the business community, also isn’t consistent with the Fair Labor Standards Act, Woods found.

Dispute Continues: The ...

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