Senior living organizers gained a regulatory victory Wednesday when the Labor Department announced it was rescinding an expanded “joint employer” rule.

Industry officials previously had warned the expanded rule could have complicated labor relations. In an extreme example, the old rule could have encouraged unions to target temporary staffing agencies for new members. Other business groups had testified the expanded rule would be problematic. 

“Labor Secretary Acosta’s decision to rescind regulator guidance on independent contractor and joint employer rules is a positive sign this administration will reverse federal rules that needlessly hamstring worker and employer flexibility in the modern workplace,” said Trey Kovacs, an analyst at the Competitive Enterprise Institute.