NFIB & RLC claim the rules are neither arbitrary nor capricious
WASHINGTON, D.C. (Feb. 12, 2021) – NFIB filed a brief today defending the Department of Labor’s final rule from January on joint-employer standards under the Fair Labor Standards Act. NFIB argues that the Department’s rulemaking process was neither arbitrary nor capricious under the Administrative Procedure Act (APA), noting the Department’s consideration of submitted comments and comprehensive explanation of the rule.
“Small business owners are the ones who suffer the most when government agencies continue to change the rules,” said Karen Harned, Executive Director of NFIB’s Small Business Legal Center. “Now more than ever, small businesses depend on simple and dependable instructions from regulatory agencies. The Department heard the concerns of small business owners, made appropriate modifications, and issued a final rule. To change the joint-employer standard again would bring another unnecessary burden to small businesses when the Department issued the final rule fairly and legally.”
NFIB filed the brief with the Restaurant Law Center (RLC) and urges the Court to reverse the district court’s judgment. The final rule issued in January provided small business owners clarity by setting forth a standard that helped alleviate uncertainty and decreased compliance costs.
NFIB previously submitted comments in support of the Department of Labor’s proposal to simplify the test for determining joint-employer status.
The NFIB Small Business Legal Center protects the rights of small business owners in the nation’s courts. NFIB is currently active in more than 40 cases in federal and state courts across the country and in the U.S. Supreme Court.