Employer Groups Move to Defend Joint Employer Rule

A coalition of groups representing hundreds of thousands of employers today filed a motion to intervene in State of New York, et al, v. Scalia, a lawsuit where certain state attorneys general are seeking to overturn the U.S. Department of Labor’s newly-enacted joint employer rule.

The motion would allow for the business community to take a more involved role in the defense of the lawsuit. The groups signing onto the motion are the International Franchise Association, the U.S. Chamber of Commerce, National Retail Federation, American Hotel & Lodging Association, Associated Builders and Contractors, HR Policy Association.

“The DOL’s new joint employer rule is well reasoned, grounded in sound legal principles, and provides needed certainty to complex legal issues relevant to franchising,” said Matt Haller, IFA Senior Vice President of Government Relations and Public Affairs.

“It’s unfortunate that these attorneys general have chosen to focus their mid-pandemic time, energy, and taxpayer money into a lawsuit that will hurt business reopening and economic growth in their states. IFA is proud to defend this important rule on behalf of America’s 733,000 franchise businesses and their employees,” he said.

"The Department's rule clarifying when a joint employer relationship exists is consistent with long-standing precedent--from the Ninth Circuit no less. This important rule will provide clarity for both employers and employees on their wage-and-hour obligations and rights," added Marc Freedman, Vice President of Employment Policy for the U.S. Chamber of Commerce.

The judge has set a briefing schedule for the parties to seek summary judgment. A final decision in the case is expected in the summer.