NLRB Restores Narrow Joint Employer Standard

NLRB Restores Narrow Joint Employer Standard

Several years ago, the NLRB detoured from its long-time stance that businesses using workers were only considered joint employers with the hiring employer if the user business exercised substantial direct and immediate control over the workers. In a 2015 decision, the NLRB expanded its joint employer test to include indirect control through contractual terms between the user business and hiring employer that impact the hiring employer's workforce with the user business. Our prior client alert on this subject is available here. As expected, a backlash occurred, and the NLRB issued regulations returning to the original and more manageable standard. NLRA joint employer status is significant to whether the business (even when not signatory to a union) must participate in bargaining with a labor union over workers seeking to unionize at the business and whether the business's relationship with the worker is regulated by concerted activity and other protections in the Act. The new regulation is viewable here.