September 7, 2022
On Sept. 6, the National Labor Relations Board (NLRB) issued a notice of proposed rulemaking addressing the joint employer test under the National Labor Relations Act (NLRA).
The NLRB recommends replacing the proposed rule that took effect on April 27, 2020. Under that rule, an employer could be a joint employer of another entity if it had direct and immediate control over the essential terms and conditions of employment of the other entity’s workers. Under the new proposed rule, two or more employers would be considered joint employers if they “share or codetermine those matters governing employees’ essential terms and conditions of employment.” This new proposed standard is considered much lower and potentially much easier to meet.
If two entities are joint employers under the NLRA, both must bargain with the union that represents the jointly employed workers, both are potentially liable for unfair labor practices committed by the other, and both are subject to union picketing or other economic pressure if there is a labor dispute.
If you have questions regarding this or any other employment law matter, please contact Dean Leazenby at Warrick & Boyn, LLP.