Joint Employer Rule Struck Down - What it Means for Employers
As our friends at Fisher Phillips recently reported, A recent legal decision in Texas has halted the implementation of a controversial joint employer rule proposed by the National Labor Relations Board (NLRB). This rule sought to redefine the criteria for joint employment, potentially affecting how workers are considered employees of more than one entity for labor relations purposes. The ruling, which came just before the rule was set to take effect, is expected to impact union organizing and collective bargaining efforts nationwide.
Under the current joint employment standard, an employer is considered a joint employer of another company's employees if they share or co-determine essential terms and conditions of employment. These include aspects such as wages, benefits, hours of work, hiring, discharge, discipline, supervision, and direction. The proposed rule, however, aimed to broaden the definition of joint employment to include situations where a business has the right to control another company's employees' working conditions, as well as cases of reserved, unexercised, or indirect control. This change could have led to increased union activity across various industries, including franchising, contracting, and supply chains.
While this notion specifically has been halted, the state of co-employment, staffing, and other joint employment industries continues to evolve every day. To stay up to date with the most relevant and timely industry news, make sure to subscribe to the PEO Compass!
Source article from Fisher Phillips can be found here.
Author: Sharlie Reynolds
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