The U.S. Labor Department announced that it is rolling back the Obama administration’s standard for determining “joint employer” status of contract and franchise workers. The department in a statement said it had withdrawn a 2016 interpretation of the federal Fair Labor Standards Act (FLSA) that expanded the circumstances under which a business could be held liable for wage-law violations by staffing agencies, contractors, and franchisees. The Obama administration guidance said a worker’s level of “economic dependence” on a company should also be considered along with hiring, firing, and wage-setting power, which is the usual standard for determining an employer-employee relationship.
Read the statement here.
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