NLRB Releases Proposed Rule to Change Standard for Determining Joint-Employer Status

On September 14, 2018, the National Labor Relations Board (NLRB) published a proposed rule revising the test for whether two employers are considered joint employers and held liable under the National Labor Relations Act (NLRA).  The NLRB and reviewing courts have over the years addressed situations where the working conditions of employees are affected by two separate companies engaged in a business relationship. To be considered a joint employer under this rule, an employer must possess and actually exercise substantial direct and immediate control over the essential terms and conditions of employment such as hiring, firing, discipline, supervision and direction.  Three years ago, the NLRB adopted a more expansive definition of joint employer that did not require direct control of an employee to be considered a joint employer.  In this rule, the NLRB has identified the following types of small businesses or entities most likely to be impacted by this rule:  contractors/subcontractors, temporary help service suppliers, temporary help service users, franchisees, and labor unions.

Comments on this Proposed Rule are due on November 13, 2018 and can be submitted here.

Press Release from NRLB can be found here.

Advocacy contact: Janis Reyes  at 202-619-0312.