Biden DOL Clinches Rollback of Trump-Era Joint Employer Rule (1)

The Biden administration voided a signature Trump-era regulation that limited the circumstances under which multiple businesses share liability for wage violations.

In a final rule released Thursday, the U.S. Labor Department rescinded the 2020 measure, which had been a top priority for the business lobby—particularly franchising brands—and Republican lawmakers.

The result creates an avenue for potential federal wage crackdowns on corporate relationships involving workers at affiliated businesses, a major issue for franchise brands such as McDonald’s Corp.

“Joint employment is part of our longstanding federal labor laws,” Jessica Looman, acting administrator of DOL’s Wage and Hour Division, said in ...