NLRB Abandons Efforts to Redefine Joint Employer Rules
Recently, the National Labor Relations Board (NLRB) withdrew its challenge of a federal judge’s decision concerning the definition of a joint employer. This definition would have made it far easier for workers to be considered employees of more than one company.
Joint Employers
Joint employers are companies that control the same group of workers. In 2020, the NLRB proposed a new definition of a “joint employer” which stated that an entity can be considered a joint employer if it possesses and exercises substantial direct and immediate control over an employee’s essential terms of employment. In 2023, the NLRB sought to change this definition.
However, their plans hit a roadblock when a federal court in Texas disagreed with the NLRB’s proposed changes. The courts ruled that the NLRB’s new rules weren’t appropriate or fair in defining who counts as a joint employer under the law.
Consequently, the NLRB has chosen to stop pursuing these changes in court. They have decided not to continue arguing to overturn the court decisions that rejected their new definitions of joint employers.
Consequences for Employers
As a result of the federal court’s decision, the existing rules that determine when companies are joint employers will remain unchanged. This decision is a win for employers as the 2020 definition was relatively friendly towards employers.
If you have any questions or concerns about the NLRB’s decision or any employment-related issues, please contact Chaim Book at cbook@booklawllp.com, Sheryl Galler at SGaller@booklawllp.com, or Nadav Zamir at NZamir@booklawllp.com.
