Breaking: NLRB Joint Employer Rule Blocked: LRI INK

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Subject: Breaking: NLRB Joint Employer Rule Blocked: LRI INK

March 9, 2024

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Breaking: NLRB Joint Employer Rule Blocked

by Michael VanDervort

According to a report breaking this morning, a federal judge in Texas has invalidated the National Labor Relations Board's (NLRB) rule that broadened the criteria for determining when companies are considered joint employers of workers, sharing liability and obligations under federal labor law.

The rule, which was supposed to start on March 11, would have expanded the types of control over employment conditions that could lead to a joint employer finding. Judge J. Campbell Barker, appointed by Trump, made the decision after a lawsuit by the US Chamber of Commerce and other business groups. This ruling, which could significantly impact the franchising sector and business-to-business agreements for contract labor, is expected to be appealed to the US Court of Appeals for the Fifth Circuit, known for its conservative judgments.

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Contributing editors for this issue: Michael VanDervort

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Subject: Breaking: NLRB Joint Employer Rule Blocked: LRI INK