Pennsylvania Leads 22-State Fight Against Federal Labor Rule on Joint Employment
Updated
Updated · Lehigh Valley Business · Jun 23
Pennsylvania Leads 22-State Fight Against Federal Labor Rule on Joint Employment
3 articles · Updated · Lehigh Valley Business · Jun 23
Summary
Pennsylvania’s Labor Department is leading a 22-state coalition urging the U.S. Labor Department to withdraw a proposed joint-employment rule that states say would weaken worker protections.
The coalition argues the rule would narrow when multiple businesses can be held legally responsible for wage theft and other labor violations, letting companies shield themselves behind contractors or staffing agencies.
Twenty attorneys general, the District of Columbia, and six state labor departments joined the effort, warning the proposal would also create conflicts with federal case law and revive a version of a 2020 standard struck down in court.
States say the change would hit low-wage sectors hardest—especially construction and agriculture—where subcontractors, labor brokers and staffing firms are commonly used in modern workplaces.
Will a new federal rule make it harder for workers to recover unpaid wages?
As 22 states challenge federal policy, is a legal battle over workplace liability inevitable?
Pennsylvania and 21 States Oppose 2026 DOL Joint Employment Rule, Citing Threats to Worker Protections
Overview
In June 2026, Pennsylvania, led by Governor Josh Shapiro, brought together a coalition of 22 states and several labor agencies to oppose a proposed U.S. Department of Labor rule on joint employment. This coalition, which includes Attorneys General from states like California, New York, and Virginia, as well as state labor departments from Illinois, Maine, and others, is concerned that the rule could weaken worker protections and reduce employer accountability. Their unified stance highlights widespread apprehension that the new rule may make it harder to hold companies responsible for labor violations, potentially leaving workers more vulnerable.