The Trump Administration Overturns “Joint Employer” Rule

The Trump Administration Overturns “Joint Employer” Rule

A 2016 Obama administration rule has been overturned by the Trump administration. The “joint employer” rule made it easier for employees of staff agencies and subcontractors to hold their employers responsible for proper wages. Franchising companies that contracted out work were required to ensure the contracting companies they hired paid their employees fair wages, overtime pay, and any other requirements by law. If the staffing agencies or subcontractors shorted paychecks, the employees could then go to the franchise and get the missing funds from them.

Even though the rule being overturned causes problems for workers at a federal level, the state of California will remain unaffected. According to the Los Angeles Times, “California has the country’s strongest wage and hour laws,” which means lower chances of overtime, and higher minimum wage. Despite the federal rule changing, California will still practice their own rule regarding the joint employer issue. For example, if Target hires a subcontracted trucking company to deliver their goods to each store, Target will then be held liable for wages that the trucking company has refused or failed to pay their employee in the state of California.

The new policy takes effect on March 16th, 2020, and some groups believe the policy will allow big corporations to select staffing companies and subcontractors that will allow them to avoid responsibilities. If staffing agencies and subcontractors mistreat their employees by not paying for overtime work and they pay less money than is legally required, working people will be missing out on significant amounts of money they have rightfully earned.

If you feel that you have not been paid for overtime work or if your wages are lower than minimum wage and you would like to know your rights as an employee in the state of California, please contact the attorneys at the California Employment Legal Group today for a free consultation with an experienced employment lawyer.