As expected, the Biden Administration’s Department of Labor (DOL) has moved quickly to formally withdraw two industry-supported and organized labor-opposed regulations interpreting the Fair Labor Standards Act (FLSA) that were finalized during the Trump Administration, but in one case have been enjoined pending an appeal, and in the other had not yet gone into effect.
The first rule establishes standards for determining whether a business is a joint employer of an employee. As noted above, that rule has been enjoined pending an appeal. The other rule, establishing the standard for determining whether a worker is an employee or independent contractor, was finalized at the end of the Trump Administration but had not yet gone into effect.
Although DOL is required to accept public comments on the proposed withdrawals, the outcome is a foregone conclusion. The question now becomes whether the Biden Administration will propose its own new rules on these two important issues, presumably in a way much more friendly to organized labor and the employee advocacy groups closely aligned with the administration, or simply restore Obama-era policy by way of sub-regulatory guidance.
Members of the Center for Workplace Compliance (CWC) can read more here.