Trump turning the Department of Labor into the Department of Employer Rights

From today’s Los Angeles Times:

No advocates for workers’ rights or labor were especially surprised last week when President Trump nominated Eugene Scalia for secretary of Labor, succeeding the utterly discredited Alex Acosta.

Scalia — son of the late Supreme Court Justice Antonin Scalia — had made his reputation in Washington as a lawyer for big corporations resisting labor regulations, after all.

He had helped Walmart overturn a Maryland law mandating minimum contributions by big employers for workers’ healthcare, defended SeaWorld against workplace safety charges after a park trainer was killed by an Orca (he lost that case), and had written extensively against a federal regulation expanding ergonomic safety requirements.

But Scalia’s appointment is best seen not in the context of his own legal career, but in the context of Trump’s assault on worker rights and welfare. Despite his positioning himself during his presidential campaign as a flag carrier for the working class, Trump has rolled back numerous pro-worker regulations from the Obama era and before.

He talked a good game about bringing back manufacturing and coal jobs, but that hasn’t materialized. His steel tariffs are credited with saving some 12,000 steel manufacturing jobs, but at the enormous cost to the economy of an estimated $900,000 per job.

That’s paid by steel users, including automakers and other manufacturers. General Motors says it took a $1-billion hit in 2018from the tariffs. That contributed to its decision to shed 14,000 jobs globally and to shutter its assembly plant in Lordstown, Ohio, costing 900 jobs. Although Trump attacked GM Chief Executive Mary Barra for the decision, he also turned his ire on UAW and AFL-CIO leaders, calling them “not honest people” and blaming high union dues for the Lordstown closing. (Union dues are paid by workers, not employers.)

Read the complete article here.

Labor Department moves to ease franchise liability for wage violations

From today’s Reuters News:

The U.S. Department of Labor on Monday issued a proposal that would make it more difficult to prove companies are liable for the wage law violations of their contractors or franchisees, a top priority for business groups.

If adopted, the rule would likely help fast-food companies and other franchisors who have been sued by workers in recent years for wage-law violations by franchisees.

The department in 2017 had already repudiated legal guidance issued by the Obama administration that had expanded the circumstances in which a company could be considered a so-called joint employer under the federal Fair Labor Standards Act (FLSA).

Labor Secretary Alexander Acosta in a statement said Monday’s proposal would reduce litigation under the FLSA and provide clarity to businesses and courts. The FLSA mandates that workers be paid the minimum wage and overtime, among other requirements.

Publication of the rule kicked off a 60-day public comment period.

Under the proposal, companies would be considered joint employers only if they hire, fire, and supervise employees, set their pay, and maintain employment records. That would likely exclude many franchisors and companies that hire contract labor.

Read the complete article here.