Accessibility Tools

Skip to main content

NLRB REVERSES OBAMA-ERA INDEPENDENT CONTRACTOR TEST

Written on .

During the Obama administration, the NLRB overturned 92 traditional NLRB doctrines.  The current Trump administration's NLRB is in the process of attempting to reverse the Obama-era rulings, thus going back to the prior doctrines.  The latest example occurred in the January 25 ruling of the NLRB in Super Shuttle DFW, 16-RC-010963 (1/25/19).  The latest ruling involves shuttle-van-driver franchisees in the Dallas-Fort Worth airport.  Only employees are covered by the Labor Act, which provides them the right to unionize and engage in concerted activities.  The Board during the Obama administration had particularly limited the use of independent contractors in its ruling that Federal Express Home Delivery drivers were not independent contractors, a ruling that was overturned by the District of Columbia Court of Appeals.  In the recent ruling, the NLRB used the common-law test drawn from the Restatement of Agency, a legal treatise that names 10 factors to consider to determine whether a worker is an independent contractor or employee.  Those factors include, among other things, the level of control the business exerts over a worker, the method of payment, and the amount of supervision involved in the job.  The current ruling emphasizes that the Board should "evaluate the common-law factors through the prism of entrepreneurial opportunity when the specific factual circumstances of the case make such an evaluation appropriate."  The current Board ruling was 3-1, broken down between Trump administration appointees and the sole remaining Obama administration appointee.

NLRB Chairman John Ring recently stated that the NLRB may propose a new regulation to resolve the resolution of the issue as between independent contractors and employees.  The Board has already proposed a related rule dealing with the joint employment issue.

Related Content

Get Email Updates

Receive newsletters and alerts directly in your email inbox. Sign up below.

Recent Content

globe
On July 10, 2026, E-Verify notified employers that work authorization is extended temporarily through July 24, 2026, for workers from the f…
chaotic light lines
On July 10, 2026, E-Verify notified employers that work authorization is extended temporarily through July 24, 2026, for workers from the f…
connected spheres
The U.S. Department of Labor (DOL) announced on April 22, 2026, a new proposed rule clarifying when multiple employers are jointly liable f…
plaintiff sign
The Federal Arbitration Act (FAA) encourages the use and enforcement of arbitration agreements, although the Act contains an exception for…
3
On April 13, 2026, President Trump nominated James Macy to fill the third vacant Republican seat on the National Labor Relations Board (NLR…
deception
An employer official named in a graphic sexual harassment suit brought a counter-claim against her accuser for defamation, calling his alle…