The House of Representatives passed a bipartisan legislation resolution by a vote of 206 to 177 to block the National Labor Relations Board from implementing its new joint employer rule.

On January 12, the House of Representative passed a bipartisan Congressional Review Act (CRA) resolution by a vote of 206 to 177 to block the National Labor Relations Board (NLRB) from finalizing its new joint employer rule. The rule takes effect on February 26 and would allow a joint employer finding based on only indirect exercise of control or mere reservation of control of one contractor over another. Joint employer status is important because employers can be held jointly responsible for union recognition, collective bargaining, and unfair labor practices.

This new standard can disrupt long-standing standards in labor law and potentially change the way the construction industry operates in detrimental ways by changing well-settled subcontracting practices in the construction industry, where critical issues such as safety and scheduling often dictate that a contractor has some say in how its subcontractors’ employees behave and have some oversight in their terms and conditions of employment. For more information, click here.

The legislative process now moves to the Senate where a vote is expected soon that could block the NLRB rule. AGC supports the CRA legislative efforts to reign in the NLRB and is separately challenging the rule with business association allies in a federal lawsuit. In the lawsuit, AGC is arguing the NLRB exceeded authority under the National Labor Relations Act and acted arbitrarily and capriciously in violation of the Administrative Procedures Act.