What does a broadening of the joint-employer definition in the National Labor Relations Board rules mean to employers? It’s set to go into effect December 26, 2023, so companies should review their potential exposure and take appropriate action.
On November 8, 2023, the Daily Journal published an article, “NLRB Rules to Broaden Joint Employer Definition,” in which Mitzel Group attorneys Krista Mitzel and Sheedeh Lytz explain the new standard. This final standard for determining joint employer status under the National Labor Relations Act may create new liability for many employers, even if a company doesn’t directly employ or have control over all aspects of the employees’ employment. This will be especially important for employees hired through staffing companies or franchised businesses.
Since the new ruling clarifies that indirect control of employees is sufficient to find joint employment (and liability), employers should understand their risk. In the article, the two authors lay out the seven essential terms and conditions of employment as defined in the rule and some of the impacts to expect. For example, this ruling will promote unionization as non-union employers can now easily be considered a joint employer with union employers. Franchises and staffing agencies may need to change their entire structure to protect themselves from being dragged into employee disputes.
To read the full article on the Daily Journal website click <<here>> (subscription required).
