Trump Policy Rolls Back Obama’s ‘Joint Employer’ Rule

January 13, 2020   |   by James G. Dalton

The Labor Department issued an official rule on Sunday that corporations are only liable when they directly control the policies of their franchisees, effectively rolling back Obama administration policy that had tried to benefit unions, the Washington Examiner reported.

The Obama administration attempted, through the so-called joint employer rule, to have franchiser corporations be legally responsible for workplace violations by their franchisees, even if those were legally independent businesses.

The Trump administration ruled that in order to fit the definition of “joint employers,” both companies had to have the ability to: hire or fire an employee; determines their work schedule and pay, as well as maintain the employment records of the worker.

“This final rule furthers President Trump’s successful, government-wide effort to address regulations that hinder the American economy and to promote economic growth,” Labor Secretary Eugene Scalia said in a news release. “By giving greater clarity to businesses who want to work together, we promote an entrepreneurial culture that has driven American prosperity for decades.”

The Trump administration has been working on the issue since the president entered the White House, as business groups had opposed the Obama policy effort on the grounds that many corporations would not get involved in franchising due to concerns over additional liability. Unions backed Obama’s efforts because it made the conditions more ripe for the organized efforts of workers to pressure corporations.

Just last month the National Labor Relations Board, in settling a “joint employer” case from the Obama era against McDonald’s Corporation, determined that the company was not a joint employer with its franchise restaurants, according to Lexology.

via newsmax

Recent Comments

  1. SMSgt John Sotomayor, USAF Retired

    January 13, 2020 @ 3:31 pm

    Your Comment*This is another example of common sense to free up the strangle on businesses and that has a direct baring on a better economy, in my opinion.

  2. Nick Mulich

    January 13, 2020 @ 3:59 pm

    All of this legislation just makes more work for lawyers and the tax payer pays the bill,,

  3. MMcLaugh

    January 13, 2020 @ 3:59 pm

    You’re absolutely right SMSgt Sotomayor. It’s also a prime example of how 0bama attempted to dismantle American business and industry (not to mention OUR military). God bless President Trump and all he is doing for US!

    Thank you Senior Master Sergeant and all of OUR best and bravest for your service. God bless The United States of America.

    • ward

      January 13, 2020 @ 4:41 pm

      Unions have their place to keep employers paying honest wages for a days work but union bosses are greedy rip off artists that destroys U.S. economy with asinine demands that actually eliminates employees ambition to advance by ones ability ! Everything bo did in his 8 years of treason supported socialistic stench that destroyed individual ambition to improve ! The wannabe dictatorship bo created was to destroy U.S. labor, business & labor’s Rights being controlled by socialistic power ! Unions are dictated destruction to an individuals own talents beyond the peers one works with ! Unions can kill a business ability to compete and that was bo’s goal to create his own dictated abuse of power for his own totalitarian dictatorship .. !

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