Bradley attorney John Hargrove was quoted in the Westlaw Journal Employment on the U.S. Labor Department rescinding the Obama administration’s joint employment standards. In the agency’s first major shift in labor policy under President Trump, the department has withdrawn a 2016 interpretation of the Fair Labor Standards Act that expanded the circumstances under which a business could be held liable for wage-law violations.
“The withdrawn interpretations had attempted to define more rigidly the situations in which a worker should be found to be an employee even if that was not the intent of the company and the worker. Employers should note, however, that no statutes, regulations or case interpretations have changed, so the analysis to be applied to these issues in the real world remains the same, at least for now. For example, in the wage-and-hour context, DOL regulations and existing federal case law should be consulted. In the labor relations area, National Labor Relations Board cases must be reviewed. In cases involving employee or third-party injury, state workers’ compensation laws and common law agency principles apply as they always have. Finally, federal and state tax statutes and regulations regarding governing withholdings and contributions have not changed,” explained Hargrove.
The complete article, “U.S. Labor Department rescinds Obama-era rule on ‘joint employment,’” appeared in the Westlaw Journal Employment on June 20, 2017. (login required)