In a recent determination dated October 26, the National Labor Relations Board (NLRB), a branch of the U.S. government tasked with enforcing labor laws relating to collective bargaining and unfair labor practices, has once again reshaped the concept of joint employment (JD Supra).
The NLRB, in its final regulation, has expanded the definition of joint employment. With this broader definition, the potential liabilities and obligations that employers could face have also increased. Irrespective of an employer’s size, whether a multinational corporation or a small law firm, this change adds a fresh layer of complexity to their operational and legal landscape.
The idea of joint employment comes into play when a worker is employed by two or more legally distinct but associated or affiliated businesses. The expanded definition has implications for Corporate HR policies, outsourcing strategies, and franchising models.
As the NLRB’s redefinition of joint employment carries significant implications, it is crucial that employers consult with their legal counsels and evolve their strategies as necessary.The redefinition might necessitate an employer’s audit of contractual relationships, employment policies and even industry practices to ensure compliance with new regulations.
- Key Considerations for Legal Professionals:
- An understanding of the latest NLRB ruling and its implications
- A recalibration of employment and business outsourcing strategies
- A thorough evaluation of existing business relationships and practices for potential implications
As with any new regulations, this ruling is expected to prompt litigation in the courts, thereby leading to a greater need for experienced employment law practitioners. As the field of labor law continues to evolve, staying abreast with the latest changes is critical for both corporations and law firms alike.