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Trump Labor Department gives big companies the go-ahead to exploit franchise workers

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The Trump Labor Department is taking action to protect massive corporations from their low-wage workers seeking justice in court, because the Trump Labor Department, currently headed by Eugene Scalia, is all about putting a boot on the neck of workers. The department is finalizing a rule making it more difficult for workers at franchise businesses or contractors—like fast food workers or warehouse workers technically employed by staffing agencies—to sue the companies they actually work for for wage theft and other such violations.

The Labor Department is tightening up the joint employer standard that the Obama administration had made more worker friendly. Under Obama, companies would have counted as joint employers if they substantially set the terms of employment even if they only exerted indirect control over any individual worker. So McDonald’s, which exerts incredibly tight control over every detail of its franchisee-owned restaurants and has even told some franchisees they were paying workers too much, would count as a joint employer of McDonald’s workers. Under Trump, McDonald’s is off the hook unless it directly hires and fires workers, directly supervises the workers and sets their schedules, directly sets their pay, and manages their employment records.

But that’s the point—McDonald’s and other big companies that want to keep wages and working conditions at rock bottom while maintaining plausible deniability have gotten really good at getting franchisees and contractors to do their dirty work. They claim—and the Trump administration will back them up on this—that it’s not McDonald’s or Walmart engaging in wage theft and forcing workers into unsafe working conditions, even as the wage theft and working conditions are found across dozens of franchisees and contractors with McDonald’s or Walmart as the common factor. The common employer, in fact, exerting significant control over the places where its business is conducted.

This is a plan to let major companies abuse and exploit their workers without any legal risk for the labor law violations involved. Or, in Republican-speak via Scalia, “This final rule furthers President Trump’s successful, governmentwide effort to address regulations that hinder the American economy and to promote economic growth.” Economic growth for multi-billion-dollar companies at the expense of low-wage workers, that is.

This article was originally published at Daily Kos on January 15, 2020. Reprinted with permission.

About the Author: Laura Clawson is a Daily Kos contributor at Daily Kos editor since December 2006. Full-time staff since 2011, currently assistant managing editor.

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