Business

Labor Department rescinds expanded ‘joint employer’ rule

By Sean Higgins
Published June 7, 2017 3:29pm ET
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Labor Department rescinds expanded ‘joint employer’ rule
Companies, particularly ones that engage in franchising, feared that under the joint employer doctrine, they could be held liable for all manner of violations at workplaces they didn't directly oversee. | (AP Photo/Keith Srakocic)

The Labor Department announced Wednesday that it was rolling back an Obama administration rule that expanded the “joint employer” doctrine, the conditions for when one business can be held liable for employment and civil rights law violations at another company.

The move marks a win for business groups, which had staunchly opposed the Obama rule.

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Labor Law National Labor Relations Board Sean Higgins