On Jan. 20, 2020, the Trump Administration’s Department of Labor issued new rules on joint employer status that will make it far more difficult for contractors and consultants to sue the companies for whom they provide services over alleged violations of the Fair Labor Standards Act, which mandates payment of minimum wage and overtime to employees.

New York, California, and 18 other states and the District of Columbia swiftly filed a lawsuit in the Southern District of New York challenging the rules’ legality, asserting that the DOL’s actions were arbitrary and capricious, an abuse of discretion, and contrary to law. New York v. Scalia, Case No. 1:20-cv-01689 (S.D.N.Y. filed Feb. 26, 2020).

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