NLRB Proposes Rule to Expand Standard for Determining Joint-Employer Status

On September 7, 2022, the National Labor Relations Board (NLRB) proposed a rule expanding the standard for determining joint-employer status under the National Labor Relations Act (NLRA). This rule rescinds a 2020 final rule that set the definition of joint employer as an employer that exercises substantial direct and immediate control over the essential terms and conditions of employment. The Board proposes to expand the definition of joint-employer status to include those that have indirect control over workers, and “share or codetermine those matters governing at least one of the employees’ essential terms and conditions of employment.” 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 and users, franchisees, and labor unions.

Comments on this proposed rule are due on November 7, 2022. Comments replying to comments submitted during the initial comment must be received by the Board on or before November 21, 2022. 

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