New Joint Employer Rule Hinges on Reception in Court (1)

A new Trump administration regulation making it harder for workers to sue multiple employers for wage violations is already generating significant questions about how much sway it will have on federal courts.

The Labor Department said the rule will decrease the risk of court battles for some businesses, like franchisers and those who use contracted labor. The regulation narrows the circumstances in which two or more companies can be “joint employers” who share legal liability for paying employees minimum wages and overtime.

The agency is hoping the rule will foster a more uniform view from courts on joint employment, providing ...