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States Can’t Challenge Trump Joint Wage Rule, Biden’s DOJ Says

May 28, 2021, 5:29 PM

A coalition of Democratic-leaning states doesn’t have standing to challenge the Trump administration’s rule for determining when one company is jointly liable under federal wage law for another company’s workers, Biden administration attorneys told a federal appellate court Friday.

The states lack the standing to sue because the alleged harm caused by the joint employer rule—increased costs to enforce their state wage-and-hour laws—flows entirely from their own policy choices, administration lawyers said in a brief filed with the U.S. Court of Appeals for the Second Circuit.

“In fact, the states concede they are contemplating changes to their own statutory and ...