Press Releases

Today, Education and Labor Committee Republican Leaders Virginia Foxx (R-NC) and Fred Keller (R-PA) issued the following statement hitting Biden’s Department of Labor (DOL) for rescinding a common-sense Trump administration rule, which determined joint-employer status under the Fair Labor Standards Act (FLSA):
 
“Today’s final rule signals a return to the heavy-handed, one-size-fits-all regulatory environment of the Obama administration. Rescinding the Trump administration’s four-factor test creates needless confusion, ambiguity, and red tape during an already difficult time for employers, who are facing an onslaught of anti-business policy and rhetoric from this administration. We need policies that encourage innovation and entrepreneurship, not ones that drown job creators in senseless bureaucracy.

“While we know better than to expect common-sense policymaking from the Biden administration, we strongly urge the DOL to reinstate the four-factor test for determining joint employment and end its crusade against American ingenuity.”
 
BACKGROUND: President Trump’s joint-employer rule detailed a four-factor test evaluating whether a business exhibits significant and direct control over an employee when determining joint employment status, ensuring employers clearly understood their responsibilities under the FLSA. Today’s final rule would eliminate these clear and precise standards and harm workers, businesses, and consumers.