The Department of Labor under Secretary Eugene Scalia and President Trump issued a final rule on Sunday clarifying what situations qualify as conferring joint employer status under the Fair Labor Standards Act (FLSA). While this may seem like an arcane area of law, it is yet another example of how the Trump administration is promoting the rule of law through providing clear legal rules in areas of confusion. Unclear legal standards not only undermine the rule of law but also stifle economic growth and innovation among American businesses:

Today, the U.S. Department of Labor announced a final rule to update the regulations interpreting joint employer status under the Fair Labor Standards Act (FLSA). They have not been meaningfully updated in over 60 years. . . .

“This final rule furthers President Trump’s successful, government-wide effort to address regulations that hinder the American economy and to promote economic growth,” said Secretary of Labor Eugene Scalia. “By giving greater clarity to businesses who want to work together, we promote an entrepreneurial culture that has driven American prosperity for decades.” . . .

These revisions will add certainty regarding what business practices may result in joint employer status. This rule promotes greater uniformity among court decisions by providing a clearer interpretation of FLSA joint employer status. These benefits will in turn improve employers’ ability to remain in compliance with the FLSA and will help reduce litigation costs.

Thanks to the Trump administration for promoting the rule of law by continuing to not only roll back regulatory overreach but also to clarify federal rules that are unclear.