04.01.19

Alexander Statement on U.S. Department of Labor Proposed Joint Employer Rule

"I am glad the Administration is taking steps to solve this problem for the owners of 733,000 franchise locations, including the 17,000 in Tennessee.”

WASHINGTON, April 1, 2019 — Senate labor committee Chairman Lamar Alexander (R-Tenn.) today released the following statement on the U.S. Department of Labor’s new proposed “joint employer” rule:

“The Trump Administration’s proposed rule will help restore to franchise owners, who are hurt the most by the patchwork of joint employer standards, the opportunity to make their way into the middle class. The new rule gives businesses and workers a clear standard as to whether workers have two different employers, and I am glad the Administration is taking steps to solve this problem for the owners of 733,000 franchise locations, including the 17,000 in Tennessee.”

Background:

  • Currently, there are at least five different FLSA joint employer tests applied by various federal appellate courts and the Department of Labor.
  • In June 2017, Department of Labor Secretary Alexander Acosta withdrew Obama administration guidance that attempted to expand joint employer liability. 
  • The Department of Labor today released a proposed rule providing a joint employer test under the Fair Labor Standards Act that provides employers with clarity and predictability.
  • This proposed test examines whether an alleged joint employer exercises the power to hire and fire employees, supervise and control employee work schedules or employment conditions, set the employees’ rate and method of pay, and maintain the employees’ personnel records.
  • Senate labor committee Chairman Alexander held hearings on joint employer standards and chairs the committee that oversaw confirmation of Secretary Acosta.

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