retail news in context, analysis with attitude

From the New York Times:

"A federal judge has struck down key portions of a Trump administration rule that made it more difficult for workers to win lawsuits against companies over violations committed by contractors and franchisees.

"The rule, which the Labor Department proposed last year and made final in January, raised the bar for employees of a franchise like Burger King or Subway to win a judgment against the parent company if the restaurant violated minimum-wage or overtime laws.

"Because the contractors and franchisees that directly employ workers often have limited resources, suing the larger companies is often the best hope for workers seeking to recover wages they are owed.

"In a decision on Tuesday in U.S. District Court in Manhattan, Judge Gregory H. Woods largely sided with the more than 15 states that challenged the rule. He said the Labor Department had departed from the statute governing minimum-wage and overtime rules without adequate justification, rendering the rule arbitrary and capricious."

KC's View:

Experts seem to feel that it is likely that the administration will appeal the ruling, but unlikely that anything will happen before the presidential election in just 54 days.  So the final disposition of this case, along with a lot of other stuff, may depend on what happens at the polls.