The National Labor Relations Board (“Board”) has taken action to return to a more definite joint‑employer framework tied primarily to the exercise of substantial direct and immediate control. This framework reshapes how businesses may be held responsible for obligations involving contracted, franchise, or otherwise shared workforces. Below is what employers need to know.

Background on the NLRB Joint-Employer Standard

On October 27, 2023, the Board published a final rule (2023 Rule) that rescinded and replaced a 2020 rule regarding the standard for determining joint employer status under the National Labor Relations Act. On March 8, 2024, the U.S. District Court for the Eastern District of Texas issued an order vacating the 2023 Rule. Given this background, the Board is seeking to revise its rules and regulations to replace the vacated 2023 Rule with the previous version of its rules that remain in effect.

February 2026 Revisions

On February 25, 2026, the Board revised its rules regarding joint employer consideration to constitute joint employment “only if” the “employers share or codetermine the employees’ essential terms and conditions of employment.” In evaluating whether employers “share” or “codetermine” the essential terms and conditions of employment, the Board’s rule will require that the entity “possess and exercise such substantial direct and immediate control over one of more essential terms and conditions” of employment. The Board recognizes a wide array of...

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