NLRB Releases Proposes Rule to Change Standard for Determining Joint-Employer Status

The National Labor Relations Board (NLRB) on Sept. 14 issued a proposed rule on the standard for determining when a company will be deemed a joint employer of another company’s employees under the National Labor Relations Act.  The proposed rule would re-establish the standard in place before the controversial 2015 Browning-Ferris Industries decision.  That decision made it easier to find joint-employer status by allowing for such a finding when a company merely exercises indirect control over essential employment terms of another company’s employees or even when it has simply reserved the right to control.  The proposed rule requires the exercise of “direct, substantial and immediate control.”  AGC has previously supported such a standard in both litigation and legislation and expects to submit comments supporting the proposed rule before the 60-day comment period expires.
For more information, contact Denise Gold at [email protected] or 703-837-5326 or Claiborne Guy at [email protected] or 703-837-5382.

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