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Congress Rejects Joint Employer Rule, but Veto Expected

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Opposition to the new National Labor Relations Board (NLRB) Joint Employer Rule, which went into effect in March, continues to mount.  In April, the U.S. Senate joined the House and, in a 50-48 vote, rejected the Joint Employer Rule under the Congressional Review Act.  Sen. Joe Manchin (D - W. Va.) and independent Sens.  Kyrsten Sinema (Ariz.) and Angus King (Maine) joined Republicans in rejecting the NLRB rule. 

 Eight Democrats in the House joined Republicans in rejecting the measure also.  However, President Biden is expected to veto the bill, and there won't be sufficient votes in both chambers to have a two-thirds majority to overturn the veto.  A federal judge struck down the regulation in March, but the decision may not be applicable outside of the Eastern District of Texas.  The Rule would make it more likely for one entity to be held liable for labor practices of another entity with whom it has some relationship affecting the working conditions of the second entity's employees.

This article is part of our May 2024 Newsletter. 

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