Labor Secretary: Trump Brings ‘Clarity, Rationality’ to Obama-Era Confusion

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The Trump administration’s rolling back of former President Barack Obama’s so-called joint employer rule will bring “some clarity and rationality” following the confusion surrounding the last administration’s policy, Labor Secretary Eugene Scalia told Fox Business’ “Morning with Maria” on Monday.

Scalia insisted continued deregulation is a key part of the nation’s strongest economy in some 50 years and will benefit everyone.

“During the Obama administration, the faster wage gains were among the top 10% of wage earners,” Scalia said. “We’ve flipped that. Now, the fastest wage gains are among the bottom 10%.”


He added, “When you look at the number of different measures of how the economy is doing, it’s some people who had less opportunity historically who are some of the really big beneficiaries right now.”

The Labor Department issued an official rule Sunday that corporations are only liable when they directly control the policies of their franchisees, the Washington Examiner reported.

This effectively reversed policy from the previous administration that had tried to benefit unions, a stance business groups had opposed on the grounds that many corporations would not bother to deal with franchising due to concerns over additional liability.

Scalia emphasized the new policy now focuses on “wage-hour obligations” and will help continue the strong performance of the economy.



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