Attorney General Bonta Joins Multistate Coalition Opposing Detrimental Revisions to Joint Employment Standards

OAKLAND– California Attorney General Rob Bonta today joined a multistate coalition opposing the Trump Administration’s proposed rule that would severely narrow joint employer liability under the Federal Labor Standards Act (FLSA), Family and Medical Leave Act (FMLA), and the Migrant and Seasonal Agricultural Worker Protection Act (MSPA). In a comment letter, the coalition argues that the U.S. Department of Labor’s (DOL) proposed rule would make labor law enforcement difficult and could result in less accountability for indirect employers who nevertheless control working conditions affecting millions of vulnerable workers across the country.

“Labor laws exist to protect workers, not to create loopholes for those who seek to evade worker protections. The Trump Administration is attempting to once again weaken worker protection so that bad actors who disregard their obligations aren’t held accountable,” said Attorney General Bonta. “The loopholes that the Trump Administration are setting through this rule are unjustified, and we urge them to withdraw this proposal immediately.”

DOL’s proposed rule is a repeat attempt at implementing the changes it proposed in the 2020 Final Rule by significantly narrowing the circumstances in which an entity could be held legally accountable for federal labor law violations. Selectively drawing from the Ninth Circuit court decision in Bonnette v. Cal. Health and Welfare Agency, DOL’s proposed rule would utilize just four factors for determining when an entity has responsibilities as a joint employer. However, unlike the Bonnettedecision, which offers the factors as guidelines as part of a broader inquiry considering the “circumstance of the whole activity,” and the economic realities of the joint employment relationship, the proposed rule would prioritize those factors and end the inquiry if they are met.

The proposed rule is particularly problematic in the current workplace environment, where client firms utilize staffing companies or subcontractors, or rely on the misclassification of employees as contractors in order to escape accountability to workers who they effectively direct. Constraining the definition will exacerbate the existing lack of accountability and render FLSA, FMLA, and MSPA enforcement further out of step with the realities of the modern workplace. Separately, the proposed rule violates the federal Administrative Procedure Act. DOL has failed to provide a satisfactory justification for the proposed change, in contravention of judicial precedent, and offers no evidence to support its rationale.

In submitting today's comment letter, Attorney General Bonta joined a coalition representing 22 states, including 20 attorneys general and seven state labor departments.