More than 50 businesses and trade groups are asking Congress to pass legislation to repeal the National Labor Board’s new joint employer standard. As a reminder, in August 2015, the NLRB ruled that “indirect” and “potential” control over workers’ terms and conditions makes a company a joint employer. This rule change exposed a broad range of businesses – from contractors and subcontractors, to franchisors and franchisees – to workplace liability for another employer’s actions and for workers they do not employ.
The NLRB will not be reversing the ruling anytime soon on its own. “The president can nominate two new board members, but those nominees will require Senate approval, which takes time,” the groups wrote in their letter. “After new members are confirmed to the Board, it will take more time for an appropriate case to develop so the Board can restore the ‘direct control’ joint employer standard.” Even then, they said, the decisions could be overturned by future administrations.
Here is a link to the letter so you can see if your trade association has supported this movement. If not, you may want to consider requesting it do so.
Matt Austin who owns Austin Legal, LLC, a boutique law firm based in Ohio that limits its representation to employers dealing with labor, employment, and OSHA matters. You can call Matt at (614) 285-5342 or email him at Matt@MattAustinLaborLaw.com.