A rule change sought by the federal government that opponents argued would have narrowed the standard for employers being held liable for wage and hour violations was tossed by a U.S. District Court on Tuesday.
The ruling was a victory for New York Attorney General Letitia James, who challenged the rule change in court with a coalition of 18 attorneys general from around the country.
“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,” said James said in a statement. “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.”
The ruling stemmed from a lawsuit filed in February over a U.S. Department of Labor rule that narrowed the joint employment standard under the Fair Labor Standards Act, a federal law that establishes a minimum of workplace protections including minimum wage and overtime.
State officials argued in the suit that the rule change undermined the original intent of the law and could impose new regulatory burdens.