Reversing Course, National Labor Relations Board Reinstitutes a More Expansive "Joint Employer" Standard.

The National Labor Relations Board (NLRB) has implemented a new rule that expands the definition of "joint employer" under the National Labor Relations Act (NLRA). This rule broadens the circumstances in which companies can be considered joint employers and held liable for labor law violations and collective bargaining. The new rule allows an entity to be deemed an employer if it has indirect or reserved control over another company's workers' terms and conditions of employment, even if that control is never exercised. This rule has significant implications for franchised businesses, staffing companies, and businesses that rely on subcontractors. It is expected to impact over 100,000 franchised businesses and hundreds of thousands of small businesses. However, the rule is likely to face legal challenges and potential changes in the future. [Extracted from the article]

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