LIEB BLOG

Legal Analysts

Wednesday, September 07, 2022

Joint Employer Regulation - Collective Bargaining & Unfair Labor Practices - Retained Right of Control is Enough

The National Labor Relations Board (NLRB) published a notice of proposed rulemaking and request for comments to rescind and replace “Joint Employer Status Under the National Labor Relations Act,” which took effect on April 27, 2020.


Importantly, the proposed regulation seeks to broaden whether an employee has two or more employers each of which must comply with the law and not engage in unfair labor practices without being exposed to tremendous liability. If you have been a victim where your employer has shut down your ability to organize and fight for wages, benefits, or hours worked, you are going to want to take a look at this proposal. It's also important for conglomerates and franchisors to study and comment.  


The proposed regulation focuses "on whether a [] joint employer possesses the authority to control or exercises the power to control particular employees' essential terms and conditions of employment." It "focuses on forms of reserved and indirect control that bear on employees' essential terms and conditions of employment." These "'essential terms and conditions of employment' will 'generally include, but are not limited to: wages, benefits, and other compensation; hours of work and scheduling; hiring and discharge; discipline; workplace health and safety; supervision; assignment; and work rules and directions governing the manner, means, or methods of work performance.'”


The big change is going back to before 2020 when the NLRB looked at reserved and indirect control in establishing joint employers and liability. 


The commenting period is through November 7, 2022 and can be made through http://www.regulations.gov.