MEMBER ALERT
NUCA of Florida Members
Dear Colleague :
This alert provides details on two key developments impacting employers . In the first , a federal district court judge has struck down critical parts of the U . S . Department of Labor ’ s new joint employer rule , which took effect in March of this year and which was intended to narrow the scope of joint employer liability under the Fair Labor Standards Act . The second alert discusses the DOL ’ s revisions to the temporary rule relating to the Families First Coronavirus Response Act , which go into effect on September 16 , 2020
Federal Judge Blocks Significant Portions of DOL ’ s Joint Employer Rule
On September 8 , 2020 , Federal District Court Judge Gregory Woods struck down critical parts of the U . S . Department of Labor ’ s ( DOL ) new joint employer rule , which took effect in March of this year and which was intended to narrow the scope of joint employer liability under the Fair Labor Standards Act ( FLSA ).
Among other things , Judge Woods found that the DOL ’ s interpretation of the circumstances under which two separate entities can or should be considered “ joint employers ” for FLSA purposes did not comport with the broad definitions and remedial purposes of the Act itself . He also found that the DOL failed to justify its significant departure from its prior DOL interpretations , and the rule was therefore “ arbitrary and capricious ” in violation of the Administrative Procedure Act .
The September 8 ruling by Judge Woods is subject to further review , and the DOL has said that it is weighing its options . In the meantime , employers will have to wait , once again , for definitive guidance regarding joint employment under the FLSA .
Background
Traditionally , one entity may be deemed a “ joint employer ” of another entity ’ s employee under the FLSA if it exerts a certain degree of control over the other entity ’ s employee . By way of illustration ,
30 DITCHMEN • SEPTEMBER 2020