On February 25, the National Labor Relations Board (NLRB) announced it will be publishing a final rule on the standard for determining joint-employer status under the National Labor Relations Act. The final rule seeks to provide clear guidance to employers, by restoring the joint-employer standard that the NLRB applied for more than 30 years prior to the controversial 2015 decision in Browning-Ferris.
ABA is pleased to see the final rule, as it provides clarity and stability to the baking industry over what circumstances an employer would be considered a joint-employer.
Under the final rule, an employer now would be determined as a joint-employer of another business’s employees only if both employers share or codetermine the employee’s essential terms and conditions of employment. It further clarifies that a “business must possess and exercise substantial direct and immediate control over one or more essential terms and conditions of employment of another employer’s employees.”
The final rule goes into effect on April 27, 2020. To view the NLRB’s fact sheet on the final rule click here.
