James secures court win against Trump admin
By Nelson A. King
New York Attorney General Letitia
James on Sept. 8 secured a major victory
for workers across New York and
the rest of the nation in her lawsuit
against the Trump administration’s
Joint Employer Rule.
The United States District Court
for the Southern District of New
York invalidated in large part the US
Department of Labor’s (DOL) rule
that unlawfully narrowed the standard
for which entities may be held
jointly liable for wage and hour violations
under the Fair Labor Standards
Act (FLSA).
“Today’s ruling is a critical win
for the many American workers who
would experience wage theft or a
decrease in income due to this reckless
rule,” James said. “As our country
continues to face the economic
impacts of the COVID-19 crisis, we
cannot allow lower- and middle-
income workers to be put at an even
greater financial disadvantage.
“I will continue to do everything
within my legal power to ensure the
Trump administration does not interfere
with hardworking Americans
receiving the wages they deserve,”
she vowed.
In February, James and Pennsylvania
Attorney General Josh Shapiro
led a coalition of 18 attorneys general
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in filing a lawsuit challenging a DOL
rule that unlawfully narrows the joint
employment standard under FLSA.
The FLSA is the federal law establishing
a baseline of critical workplace
protections, such as minimum
wage and overtime, for workers
across the country.
The joint employment standard
determines when more than one
employer is responsible under FLSA
because both exert sufficient influence
over a worker’s employment.
James said the Joint Employer
Rule “undermines critical workplace
protections for the country’s
low-and middle-income workers and
could lead to increased wage theft
and other labor law violations.”
The coalition asserted in the lawsuit
that the rule directly undermines
Congress’ intent for the FLSA,
and that the USDOL violated the
rule-making process requirements.
Further, they argued that the rule
would impose significant regulatory
burdens on states and would
harm states’ economies and residents.
Additionally, the coalition
argued that the new rule is incompatible
with the text of the FLSA and
Congress’ purposes in passing it to
protect workers from unscrupulous
employers.
James said the rule also violates
New York Attorney General Letitia James. NY Attorney General Letitia James
the law by attempting to overturn a
75-year-old Supreme Court precedent
via regulation. In March, the coalition
urged the Trump administration
to immediately stop the implementation
of the Joint Employer Rule.
In a letter, the attorney general
argued that, as the country grapples
with the economic effects of COVID-
19, workers who earn hourly wages
— and who would be most negatively
affected by the rule — are also those
most likely to suffer the adverse economic
impacts caused by COVID-19,
such as having hours reduced or
being laid off.
After the Trump administration
rejected the coalition’s request, it
moved with the litigation and filed
a motion for summary judgment,
which Sept. 8’s decision largely
granted.
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