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National Restaurant Association - Acosta, DOL withdraw joint employer guidance

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Acosta, DOL withdraw joint employer guidance

The National Restaurant Association applauded the Department of Labor’s rollback of a 2016  "administrator's interpretation" of joint employment under the Fair Labor Standards Act.

U.S. Labor Secretary Alexander Acosta said Wednesday that the department was withdrawing the Obama Administration’s informal guidance on joint employment, which increased scrutiny on how small businesses operate independently of their contractors and franchisees.

Shannon Meade, our director of labor and workforce policy, applauded Secretary Acosta, saying the rollback was “a positive step in the right direction.” She added that our Association will “continue to work with the Department of Labor and Congress on the previous administration’s controversial joint employer standard.”

The DOL’s Wage and Hour Division issued the "administrator's interpretation" less than six months after the National Labor Relations Board issued a controversial ruling in the Browning-Ferris Industries case that broadened a business’s potential liability for the labor practices of third-party business partners. The Wage and Hour Division’s January 2016 interpretation attempted to expand the concept of joint-employer liability under federal wage and hour laws as well.

Learn more about our position on the Joint Employer standard

 

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