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Secretary of Labor Acosta Pulls Joint Employer Guidance Issued By Obama Administration
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- Written by Michael Saqui and Rebecca Hause-Schultz
On June 7, 2017, Secretary of Labor Alexander Acosta announced that the Department of Labor (“DOL”) was withdrawing two informal guidance letters that it previously issued on joint employment in 2015 and 2016 during the Obama administration. These guidance letters expanded the “joint employer” doctrine - which sets forth the conditions for when one company can be liable for employment and civil rights violations made by another company - stating that an employer who “indirectly” controls another employer’s workplace could be liable. This “indirect” standard significantly expanded an employer’s joint employer liability, and created confusion for employers as to what indirect control meant.