Labor Board Giving up on New Joint Employer Rule

The National Labor Relations Board (NLRB or Board) decided to withdraw its appeal in a court decision vacating the 2023 Biden joint-employer standard final rule.  NLRB v. U.S. Chamber of Commerce, 5th Cir., Motion of Voluntary Dismissal filed 7/19/24.  The Board in its motion said it believes the rule is lawful but wants "to consider options for addressing the outstanding joint employer matters before it."

Thus, the joint-employer rule from 2020 issued by the Trump Administration will remain in effect.  Under that rule, the NLRB requires joint-employers:  (1) actually exercise control; (2) that such control be "direct and immediate;" and (3) such control will not be "limited and routine."  The NLRB had sought to overturn that 2020 rule and return to a different definition of the joint-employer when two or more entities "share or co-determine" one or more of an employee's essential terms and conditions of employment.

This article is part of our September 2024 Newsletter. 

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