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Enterprise advocates and the U.S. Division of Labor can resume their struggle over unbiased contractor rules, the fifth U.S. Circuit Courtroom of Appeals determined Monday (Coalition v. Su).
The litigation started after the Biden administration in 2021 nixed a Trump-era rule on the difficulty. Enterprise teams challenged that withdrawal, arguing DOL overstepped its authority. A federal district courtroom decide agreed, and the Biden administration appealed that ruling to the fifth Circuit. The appeals courtroom issued a keep pending DOL’s publication of a brand new rule.
Biden’s DOL finalized its personal model of the rules in January, with a March 11 efficient date, main the fifth Circuit to raise its keep Monday on the request of the enterprise teams. The courtroom additionally vacated the decrease courtroom’s opinion at DOL’s request, sending it again for the courtroom to revisit.
Contemplating this and different litigation associated to the brand new rules, a courtroom may very effectively put the upcoming guidelines on maintain, an employment legislation lawyer informed HR Dive final month; however with the efficient date simply weeks away, employers ought to monitor developments intently, he stated.
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