U.S. Rep. Tom Cole (R-OK) on Jan. 15 applauded a final rule released by the U.S. Department of Labor (DOL) to revise and update its regulations interpreting joint employer status under the Fair Labor Standards Act.
“I am very pleased that the Trump administration has moved to do away with a damaging regulation imposed on America’s small business job creators, particularly franchise owners,” Rep. Cole said on Wednesday. “When small businesses are no longer crippled by red tape, they are indeed empowered to further drive the nation’s economic success and help more Americans secure a prosperous future.”
The DOL on Jan. 12 released the final rule, which it said provides “updated guidance for determining joint employer status when an employee performs work for his or her employer that simultaneously benefits another individual or entity, including guidance on the identification of certain factors that are not relevant when determining joint employer status.”
The DOL’s final rule replaces what Rep. Cole’s office called “misguided Obama-era policy,” and clarifies what qualifies as joint employment and prevents unnecessary penalties for employers, particularly for franchise owners.
Rep. Cole, ranking member on the U.S. House Appropriations Subcommittee on Labor, Health and Human Services, Education, and Related Agencies, has long advocated for changes to the DOL joint employer rule.
As former chairman of the subcommittee, for instance, Rep. Cole oversaw the inclusion of language in House versions of the annual subcommittee appropriations bill that would prohibit the Obama administration from implementing the rule, according to his office.