NLRB Issues Proposed Rule on Who Is a Joint Employer

?The National Labor Relations Board (NLRB) on Sept. 6 issued a notice of proposed rulemaking on the standard for who is a joint employer under the National Labor Relations Act (NLRA).

The NLRB recommends replacing the proposed rule that took effect on April 27, 2020. Under that rule, an employer could be a joint employer of another entity if it had direct and immediate control over the essential terms and conditions of employment of the other entity’s workers. Under the proposed rule, two or more employers would be considered joint employers if they “share or codetermine those matters governing employees’ essential terms and conditions of employment.”

If two entities are joint employers under the NLRA, both must bargain with the union that represents the jointly employed workers, both are potentially liable for unfair labor practices committed by the other, and both are subject to union picketing or other economic pressure if there is a labor dispute.

This is breaking news. The article will be updated.

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