Board Proposes Rule to Change its Joint-Employer Standard

NLRB Proposes Rule to Change its Joint-Employer Standard

Per POLITICO, the National Labor Relations Board will propose a joint employer rule on Friday that would reverse the Obama-era Browning-Ferris standard, handing a major win to businesses.

The proposed rule addresses the circumstances under which franchisors can be held liable for labor violations committed by franchisees and contractors. President Donald Trump’s NLRB sought to reverse Browning-Ferris last year, but its efforts were thwarted by ethics conflicts with one of Trump’s appointees, William Emanuel.

In a written statement, the board suggested that the proposal would revert to the pre-Obama standard.

“Under the proposed rule, an employer may be found to be a joint-employer of another employer’s employees only if it possesses and exercises substantial, direct and immediate control over the essential terms and conditions of employment and has done so in a manner that is not limited and routine,” the board said.

The board’s three Republican members favored the change, while Democrat Lauren McFerran dissented. The fifth seat remains vacant.