The National Labor Relations Board (NLRB) has introduced a significant change in the joint employer test that is likely to have noteworthy implications for employers. The NLRB has recently finalized a rule that broadens the scope of the joint employer test. It subsequently replaces a policy from 2020, which effectively excused joint employers from bargaining unless employees could furnish proof that the joint employer exerted “direct and immediate control.
The previous policy positioned the burden of proof firmly on the employees to illustrate direct and immediate control by the joint employer. However, with the introduction of this new rule, the scenario paints a different picture, potentially shifting some degree of that burden back onto employers.
While the dramatic shift in policy introduces additional complexities and potential challenges for employers, it also provides an opportunity for them to revisit their existing processes and structures to ensure compliance. Detailed information can be found in an article by Kohrman Jackson & Krantz LLP.
With these changes being implemented rapidly, employers are urged to stay current and informed to preempt any legal complications that may arise down the line. As more details and guidance on this new rule become available, employers and their legal teams would be well-advised to work closely with labor relations professionals to navigate these changes effectively.
While this rule change could potentially impact a substantial number of employers, not all businesses will face the same challenges or potential liabilities under this policy shift. The level of impact is likely to be highly dependent on the individual business and the specific circumstances surrounding their relationships with their employees.
Given the potential complexities and uncertainties this rule change introduces, it would be prudent for legal professionals working in corporations and law firms to inform themselves thoroughly. An understanding of the complete implications and how best to manage them plays a crucial role in adeptly navigating the dynamic landscape of labor relations.