June 23 -
A group of 17 Democrat-led states have told a federal judge that the U.S. Department of Labor’s rule making it more difficult to hold companies liable for wage-law violations by franchisees and contractors will collectively deprive them of more than $20 million in annual tax revenue.
The states, led by the office of New York Attorney General Letitia James, moved for summary judgment in Manhattan federal court on Monday in their February lawsuit seeking to strike down the rule. They said the rule, which took effect in March, will cause workers in their states to lose more than $520 million in wages each year.
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