A federal judge in New York invalidated substantial portions of the U.S. Department of Labor’s (DOL’s) joint-employer rule. The department’s rule, which was issued earlier this year, narrowed the definition of “joint employer” under the Fair Labor Standards Act (FLSA).
Proponents of the rule have said that it provides clarity to businesses about franchise and contractor relationships. “The changes in this final rule break down barriers that keep companies from constructively overseeing, guiding and helping their business partners,” said Wage and Hour Division Administrator Cheryl Stanton, when the final rule was announced.
