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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