In a significant move, The National Labor Relations Board has released its final rule on joint employment that is bound to increase union organizing and collective bargaining efforts across the nation. As per this finalized rule, workers could find it easier to be considered employees of multiple entities for labor relations purposes.
The rule has sparked controversy due to its decision to establish joint employment not just when one company has the right to control the terms and conditions of another company’s employees but also in certain other circumstances that have yet to be fully detailed. Considering the confidentiality of this information, it would be interesting for our audience of legal professionals to learn more about the implications of this new rule.
The joint employer rule has previously faced criticism for potentially causing unfair litigation against corporations. With this new definition, corporations might have to seek new ways to handle employer-employee relations. As shared by renowned labor law advisory Fisher Phillips, this is a move that will most likely prompt an increase in union membership, given the potential for greater worker protection.
For companies and law firms seeking to understand the scope of this new rule, we suggest a 10-step plan:
- Begin by understanding the fundamentals of the finalized joint employer rule.
- Study past criticisms and wrap your head around potential implications.
- Understand the definition of ‘joint employment’ in the context of this rule.
- Consider the impact on your current labor relations and collective bargaining agreements.
- Evaluate the potential impact on your company’s existing contracts.
- Analyze the possible effects on your company’s litigation strategies.
- Assess the role of unions in your organization and potential changes.
- Plan for the increased likelihood of joint employer allegations and how to handle them.
- Consider how this could affect your current organizational structure.
- Prepare for potential future changes in legislation given the controversial nature of the rule.
Please find more details on the finalized rule at the official JD Supra report.
It’s an important time for legal professionals, particularly those specializing in labor law and corporate law. As we gain clarity on the full implications of this rule, diligent observation and agile strategies would be key for corporations and law firms alike.