Last week, a significant update to federal labor law arrived as the National Labor Relations Board (NLRB) issued final rules to broaden the definition of joint employers. A complex aspect of labor compliance, joint employers are essentially companies that, although not the direct W-2 employer of the employee, are still considered an employer for the purpose of labor compliance. This change was brought into effect by Parker Poe Adams & Bernstein LLP.
In terms of the legal landscape, this development carries significant implications. The revision in the definition of joint employers will potentially affect the dynamic between companies and their labor force, and is likely to impact numerous corporations and law forms across the nation.
Critically, for all entities ensnared in this new status, they will be legally obligated to comply with various labor regulations, a change that in effect promise to bolster the protection offered to employees.
Given the wide-ranging implications of the new rules, employers — and legal professionals advising them — should start to familiarize themselves with the nuances of these new joint employer obligations.