Last week, the National Labor Relations Board (NLRB) issued a Notice of Proposed Rulemaking, seeking to narrow the circumstances under which two or more separate employers may be joint-employers for purposes of the National Labor Relations Act (NLRA).
Under the NLRB’s proposed rule, an employer may be a joint employer of another employer’s employees only if that employer exercises “substantial direct and immediate control” over the “essential terms and conditions of employment, such as hiring, firing, discipline, supervision, and direction” of the second company’s employees. The proposed rule is a substantial departure from the current joint-employer standard under which an employer may be found to be a joint employer where its control over another employer’s employees is indirect, limited or routine, or contractually reserved, but not exercised.
The proposed rule would be a welcomed change for employers. The rule is currently in a 60 day comment period and we will continue to provide updates on the rule’s status. If you have any questions about joint employment, please contact us.
This post was written by Rachel Felton.