CEO DATELINE - Business groups applaud decision to curb joint employer, overtime rules
CEO DATELINE - Business groups applaud decision to curb joint employer, overtime rules
- June 9, 2017 |
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Walt Williams
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The Trump administration recently announced it was beginning the process of potentially withdrawing from two Obama-era rules expanding the definition of "joint employer" and the number of people eligible for overtime pay, handing victories to business groups that lobbied vigorously against both.
Both rules had rankled retailers and restaurants in particular. The joint employer expansion would have expanded federal protections for employees in franchises such as McDonalds, while the overtime rule would increase the number of workers eligible for overtime pay by as much as 4 million.
The Department of Labor officially announced its intention to withdraw from the joint employer rule Wednesday. That same day, Labor Secretary Alexander Acosta said regulators would soon begin the process of reviewing the overtime rule.
In a statement, the International Franchise Association called the joint employer standard "one of the most costly and burdensome regulations impacting the franchise business model."
"While uncertainty surrounding the new joint employer standard has made it harder for America's 733,000 franchise owners to grow and create new jobs, we are pleased the DOL is taking first steps to undo this costly regulation created by the previous administration," IFA Vice President of Public Affairs Matt Haller said.
National Retail Federation CEO Matt Shay also welcomed DOL's decision.
"Drastically expanding joint employer liability to hold one business responsible for the actions of another independent business, such as a subcontractor or franchisee, did nothing to protect employees and only created uncertainty that led to more growth-chilling litigation," he said.
As for the overtime rule, Jack Mozloom, spokesman for the National Federation of Independent Business, told The Hill newspaper, "We're extremely glad they are reviewing this issue." http://bit.ly/2rdtaxf
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