Chairman Scott Applauds Biden Administration for Protecting U.S. Workers from Wage Theft

WASHINGTON – Chairman Robert C. “Bobby” Scott (VA-03) released the following statement after the Labor Department finalized a rule to rescind the Trump-era Joint Employment Rule that would cost workers more than $1 billion every year if it remained in effect. The Fair Labor Standards Act’s broad joint employment standard has long ensured that workers can hold multiple employers accountable for wage theft where the employee establishes that he or she is economically dependent on a joint employer. 

“Today’s action by the Biden-Harris Administration will protect Americans from wage theft and make sure that companies are held accountable for cheating workers out of their hard-earned paychecks. The Trump-era Joint Employment rule improperly narrowed the Labor Department’s interpretation of joint employment liability under the Fair Labor Standards Act.  As a result, the Trump rule improperly shielded certain employers from their shared responsibility to ensure employees are paid for the hours they work. The Economic Policy Institute found that the rule would have cost vulnerable workers more than $1 billion annually

“As we recover from this pandemic, it’s critical we take every step to protect workers’ rights and ensure they receive fair wages. I applaud the Biden-Harris Administration for rescinding the Joint Employment Rule and for its continued commitment to helping every American Build Back Better.” 

The Joint Employer Rule went into effect March 2020, but in September 2020, a federal district court invalidated most of the rule, holding that the Rule improperly narrowed joint employment liability.


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