As we previously reported, the National Labor Relations Board’s (NLRB) rule on joint employment has been delayed and ultimately blocked by a Texas District Court. Now, the NLRB has officially withdrawn its appeal of this ruling. This means that the current employer-friendly standard for determining joint-employer status under federal labor law will remain in place for the foreseeable future. Under this standard, employers are only considered joint employers if they exercise direct and immediate control over the worker’s essential terms and conditions of employment.
For background, joint employment occurs when two or more employers are jointly responsible for a worker. This can happen when two employers share or codetermine the worker’s essential terms and conditions of employment, such as wages, benefits, hiring, firing, discipline, and supervision.
Next Steps
It is also crucial for employers to remain mindful of other federal laws, such as the Fair Labor Standards Act (FLSA), the federal Family and Medical Leave Act (FMLA), and the Occupational Safety and Health Act (OSH Act), which have their own rules and regulations regarding joint employment.
Employers should consult with an employment attorney to discuss the specific impact of the new joint employer rule on their operations and to develop strategies for compliance.
