After several years – and a Notice of Proposed Rulemaking (NPRM) that received more than 13,000 comments – the National Labor Relations Board (NLRB) issued its final rule on the Standard for Determining Joint Employer Status under the National Labor Relations Act (NLRA).
Pursuant to the new rule, an entity may be considered a joint employer of a group of employees if each entity has an employment relationship with the employees and they share or codetermine one or more of the employees’ essential terms and conditions of employment.
Essential terms and conditions of employment are defined exclusively as: (1) wages, benefits and other compensation; (2) hours of work and scheduling; (3) the assignment of duties to be performed; (4) the supervision of the performance of duties; (5) work rules and directions governing the manner, means and methods of the performance of duties and the grounds for discipline; (6) the tenure of employment, including hiring and discharge; and (7) working conditions related to the safety and health of employees.
“The joint employer standard is only implicated if an entity employs the workers at issue and has authority to control at least one of these terms or conditions,” the NLRB explained. “Authority over other matters is not sufficient.”
According to the agency, the final rule “more faithfully grounds the joint employer standard in established common law agency principles. In particular, the [final] rule considers the alleged joint employers’...
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