Franchise Workers Win Victory Over U.S. Effort to Curb Lawsuits

Franchise Workers Win Victory Over U.S. Effort to Curb Lawsuits

A judge rebuffed a Labor Department move that made it harder for employees to win judgments against parent companies over pay violations.A federal judge said a new Labor Department rule for franchises had departed from a minimum-wage and overtime statute without adequate justification.Credit...Paul Sancya/Associated PressBy Noam ScheiberA 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