By: Andrew McKinley and Eric Lloyd
Seyfarth Synopsis: Today, the U.S. Department of Labor rescinded the final rule entitled “Joint Employment Status Under the Fair Labor Standards Act,” more commonly known as the Joint Employer Rule. This alert provides an overview of the DOL’s action and its impact on employers.
With the growth of the gig economy and in
Continue Reading While Its Appeal Remains Pending, the DOL Rescinds Its Joint Employer Rule as Inconsistent with the FLSA
By: Louisa J. Johnson and Noah A. Finkel
Seyfarth Synopsis: Much has been written in the past few weeks about a recent federal court decision that invalidated the U.S. Department of Labor’s (“DOL”) joint employment rule. While the immediate reaction of some may be to view this as a terrible decision for businesses that expands the potential for an
Continue Reading Is Invalidation of the DOL’s Joint Employer Rule Much Ado About Nothing?
By: Barry J. Miller, Molly C. Mooney, and Alison H. Silveira
In an attempt to extend the reach of state wage/hour laws to reach more defendants, Plaintiffs’ lawyers have sought to expand the employment relationship in a variety of ways. One powerful tool in their arsenal is the concept of joint employment, which can saddle an organization with
Continue Reading Massachusetts Business Litigation Session Rejects “ABC Test” for Joint Employer Status
‘Twas the week before Christmas, in a year for the ages.
So here’s our latest recap of hours and wages.
The letters and laws. The regulations and cases.
A year’s worth of matters that impacted workplaces.
We begin up at One First, where SCOTUS debated
A trio of cases
By: Kerry Friedrichs and Elizabeth MacGregor
Seyfarth Synopsis: The Ninth Circuit’s recent decision in Salazar v. McDonald’s Corporation is welcome news for entities facing concerns about joint employment status under California law, and in particular, for franchisors. In Salazar, the Ninth Circuit held that the plaintiffs, who were employed by a McDonald’s franchisee, were not also employed by McDonald’s under
Continue Reading Common Sense Prevails For California Franchisors: Ninth Circuit Focuses On Actual Control of the Worker in Joint Employment Analysis
Co-authored by Alex Passantino and Kevin Young
Seyfarth Synopsis: On April 1, 2019, the U.S. DOL announced a proposed rule to clarify joint employment under the FLSA. The rule would establish a four-factor balancing test for joint employer status. It also rejects various factors that have fueled recent litigation, e.g., a worker’s economic dependence on a potential joint employer, the potential employer’s business model, and its unexercised power over the worker.
This is the third proposed rule that the DOL has issued in a month’s time. Like the other proposals (concerning overtime exemptions and the regular rate of pay), this rule—if adopted—should provide welcome clarity for many businesses. This is particularly true for those most targeted by joint employment litigation, such as franchisors, staffing agencies, and businesses with subsidiaries or affiliates.
On February 28, the Wage & Hour Division sent to the White House Office of Information and Regulatory Affairs its long-awaited regulatory proposal on joint employment. Not much is known about the proposal, which was described in the Regulatory Agenda as addressing the changes in the workplace in the 60 years since most of 29 CFR 791
Continue Reading WHD’s Joint Employer Reg Heads to White House
Co-authored by: Steve Shardonofsky and John P. Phillips
Seyfarth Synopsis: On November 7, 2017, the U.S. House of Representatives passed the Save Local Businesses Act. If passed by the Senate, the bill would overturn Obama-era decisions and agency guidance broadly defining and holding separate, unrelated companies liable as “joint employers” under federal wage & hour and labor law. Perhaps more
Continue Reading Passage of the Save Local Businesses Act in the House May Signal a Broader Rejection of Obama-Era Rules On Joint Employment
Authored by Alex Passantino
On June 7, Department of Labor Secretary Alexander Acosta announced the withdrawal of the DOL’s 2015 and 2016 Administrator Interpretations (“AIs”) on joint employment and independent contractors. These documents were statements of the Wage & Hour Division’s interpretations of the FLSA’s (and Migrant and Seasonal Agricultural Worker Protection
Continue Reading DOL Withdraws Guidance on Joint Employment, Independent Contractors
Co-authored by Gerald L. Maatman, Jr., Gina Merrill, Brendan Sweeney, and Mark W. Wallin
Seyfarth Synopsis: A New York federal court in Durling, et al. v. Papa John’s International, Inc., Case No. 7:16-CV-03592 (CS) (JCM) (S.D.N.Y. Mar. 29, 2017), recently denied Plaintiffs’ motion for conditional certification of a nationwide collective action in an FLSA minimum wage action
Continue Reading New York Court Delivers Denial Of Certification In Papa John’s Drivers’ Class Action