DOL Withdraws Joint Employment Guidance

2 Min Read By MRM Staff

In a move that has far-reaching impact for the restaurant franchise landscape, the Department of Labor has withdrawn the 2015 and 2016 informal guidance on joint employment and independent contractors.   

“The National Restaurant Association applauds Secretary Acosta for withdrawing this internal guidance," Shannon Meade, Director of Labor and Workforce Policy, National Restaurant Association, responded in a statement."This is a positive step in the right direction. However, we will continue to work with the Department of Labor as well as Congress on the previous administration’s controversial joint employer standard.” 

U.S. Secretary of Labor Alexander Acosta added that removal of the administrator interpretations does not change the legal responsibilities of employers under the Fair Labor Standards Act and the Migrant and Seasonal Agricultural Worker Protection Act, as reflected in the department’s long-standing regulations and case law. The department will continue to…