Advocacy News – March 13, 2024
A district court judge in Texas struck down a U.S. National Labor Relations Board (NLRB) rule making it easier for employers who contract employees from other companies to be deemed a joint employer. The rule had been slated to take effect March 11.
Why it matters: The NLRB’s rule would have treated many companies as employers of certain contract and franchise workers — even when those companies lacked any meaningful control over their working conditions — and required them to bargain with unions representing them. The US Chamber said in a statement: “This ruling is a major win for employers and workers who don’t want their business decisions micromanaged by the NLRB. It will prevent businesses from facing new liabilities related to workplaces they don’t control and workers they don’t actually employ.”
What’s next: The NLRB is expected to appeal the decision to the New Orleans-based 5th U.S. Circuit Court of Appeals. Employers with an interest in this issue should continue to closely monitor this story.