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joint employerarbitrary and capriciousrulemaking vacatur
New York v. Scalia
New York v. Scalia, 490 F. Supp. 3d 748 (S.D.N.Y. 2020)
Key Principle
The Department of Labor's 2020 'vertical' joint-employer rule under the FLSA—which required 'direct and immediate control' via a four-factor test—is unlawful under the APA because it conflicts with the FLSA's broad, economic-reality-based definitions of 'employ' and 'employer' and was arbitrary and capricious; the rule is vacated as to vertical joint employment.
Area of Law
General
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