June 3, 2020 / 1:53 AM / a month ago

Judge says NY, other states have standing to challenge DOL joint employment rule

A federal judge in Manhattan has ruled that 17 Democrat-led states and Washington D.C. have standing to challenge the U.S. Department of Labor’s rule making it more difficult to prove that companies are “joint employers” that can be held liable for wage-law violations by franchise and contract workers.

U.S. District Judge Gregory Woods on Monday rejected DOL’s claim that the states failed to allege any plausible injuries in their February lawsuit, pointing to their claims that the rule that took effect in March will reduce states’ tax revenue by limiting companies’ liability and increase their administrative and enforcement costs.

To read the full story on Westlaw Practitioner Insights, click here: bit.ly/2Mnmmdr

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