New Joint Employer Rule “Qualified Positive” For Employers

The new joint employer rule, approved by the Department of Labor earlier this month, is a positive for employers, according to employment attorneys cited in this Business Insurance article, but they see ambiguities and expect a spate of litigation before its effect will be clarified. The rule applies in situations where more than one employer is involved in an employee’s retention, such as employment through a staffing agency, a subcontractor, or by way of a franchise operation. The rule furthers President Trump’s efforts “to address regulations that hinder the American economy and to promote economic growth,” according to Secretary of Labor Eugene Scalia. The new rule will mean, as one employment attorney explains it, that even if an employer provides a worker with a workplace handbook or requires adherence to certain standards, it won’t necessarily create a joint employment scenario. The primary consideration is control, he says. But according to the general counsel of the National Employment Law Project, this rule is contrary to law and “a complete reversal and narrowing” of Obama administration guidance.