The Labor Department proposed a new rule Tuesday aimed at clarifying when businesses can be held accountable for violating wage or leave protections for contractors, franchisees, and regular employees.
The rule proposes a single nationwide standard addressing joint employer status under the Fair Labor Standards Act, the Family and Medical Leave Act, and the Migrant and Seasonal Agricultural Worker Protection Act.
In particular, it would make it easier for franchises, such as fast-food chains, to avoid liability under the law for workers who are not employees. Similar efforts during the first Trump administration were met with praise from business groups and opposition from unions.
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Acting Secretary of Labor Keith Sonderling said that the proposal is part of the Trump administration’s efforts in “simplifying compliance” for U.S. employers.
“This proposal helps us deliver on that promise,” Sonderling said. “A clear standard on
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