On February 26, 2026, the National Labor Relations Board (NLRB) unveiled a new final rule that will withdraw the NLRB’s November 2023 final rule that sought to cast a wider net in determining joint employer status, which was struck down by a federal district court in March 2024. The new final rule will formally reinstate the NLRB’s February 2020 narrower standard for determining joint employer status based on thirty years of previous NLRB case law and required evidence that the putative joint employer exercised “substantial direct and immediate control over one or more essential terms or conditions” of another employer’s employees.

Quick Hits

• The NLRB issued a final rule that reinstates the 2020 standard for joint employer status, formally withdrawing a broader 2023 rule struck down in federal court.
• The rule narrows the meaning of “essential terms and conditions of employment” for joint employer status purposes to wages, benefits, hours of work, hiring, discharge, discipline, supervision, and direction.
• The return to the 2020 rule provides greater clarity and predictability for employers, particularly those operating in franchise, staffing, subcontracting, or other arrangements involving multiple entities.

The NLRB is issuing the final rule, which is set to be published in the Federal Register on February 27, 2026, without a period of notice and comment. The final rule reinstates the 2020 rule that has functionally been in effect since a March 2024 decision by U.S....

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