The UBC applauds the decision of the U.S. Department of Labor to rescind the Trump Administration’s Joint Employer Rule. This rule, which hurt workers, ignored decades of case law and was unsupported by the Fair Labor Standards Act (FLSA), was struck down in federal court last year for similar reasons.
“This is a welcome decision,” said Douglas J. McCarron, General President of the UBC. “The 2020 Joint Employer Rule made it easier for employers to evade minimum wage, overtime, and record-keeping requirements.”
Using mid-range numbers, $8.4 billion a year of federal and state tax revenues are lost, and workers’ compensation insurers lose $2 billion a year in premiums. By failing to pay required taxes, insurance premiums and overtime pay, crooked contractors can underbid law-abiding employers.
“All of those unpaid taxes and insurance premiums impact taxpayers and good businesses,” said McCarron. “The bottom line is that we shouldn’t put up with the contractors that drive the abuse and fraud in the industry by pretending that they have nothing to do with it. If you work, you should get paid, and a business should not be put out of business for following the law.”
View the full statement, HERE.