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States Can Advance Challenge Over DOL Joint Employer Rule: Judge

June 2, 2020, 9:25 PM

Eighteen state attorneys general have standing to continue a lawsuit to block a Trump administration rule that narrows the circumstances in which multiple businesses share liability for wage violations, a federal judge has ruled.

The decision, which overcomes a key hurdle in the blue state coalition’s bid to overturn the Labor Department’s relaxed “joint employer” interpretation, denied the administration’s request to dismiss the lawsuit. Judge Gregory H. Woods, of the Southern District of New York, will consider whether the DOL regulation violates regulatory procedure law and should be set aside.

“The States have plausibly alleged that the...

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