Business and industry groups Wednesday praised two separate moves by the U.S. Labor Department to delay or roll back changes to wage and hour rules made during the Obama administration.
Labor Secretary Alexander Acosta withdrew guidance on the issue of joint employment. In informal guidance, the Obama administration had strongly insisted that companies and staffing companies they hired, or restaurant-holding companies and franchise operators, were equally and jointly responsible for properly paying employees. The department said it will still continue to enforce all wage and hour laws. Business groups said Acosta’s move would help franchise businesses.