NLRB Finalizes Rule Restoring Balance To Test for Determining Who Is a Joint Employer for Labor Law Purposes

The National Labor Relations Board (NLRB or Board) has finalized a rule that restores much needed balance to the test the agency uses for determining when two employers operate as a joint employer for purposes of their compliance obligations under the National Labor Relations Act (NLRA).

The final rule effectively overturns a controversial joint employer test adopted in 2015 by the Obama-era NLRB that significantly expanded joint employer liability. Notably, in this instance the Board used its infrequently employed rulemaking authority, as opposed to its traditional method of setting policy through a case decision, which will make it more difficult for a future Board to reverse course. The rule is scheduled to go into effect on April 27, 2020.

A copy of the Board’s joint employer rule is available online. The NLRB has also published a Fact Sheet on the new rule.

Members of the Center for Workplace Compliance (CWC) can read more here.