Back-peddling on Who Is the Employer: The NLRB Proposes a Revision to the Joint Employer Standard

In a 2015 controversial decision, the National Labor Relations Board (“NLRB”) ruled that, for purposes of federal labor law violations, a business may be deemed a joint employer of another company’s employees if the business had “indirect” control over those employees. The NLRB recently announced that it would roll back on this decision, proposing a new rule that would overturn the prior decision and find joint employer status if the business controls the “essential terms and conditions” of their employment such as hiring, firing, disciplining, and supervising the other company’s employees. This control is required to be “direct and immediate,” as opposed to “limited and routine.” At this time, the NLRB is encouraging comments on the proposed rule. More information is available here.

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