The National Labor Relations Board (NLRB) has postponed the effective date for its new joint employer rule to February 26. Prior to this change, the rule was scheduled to take effect on December 29.
The move was announced in a notice filed by the NLRB in a Texas federal court. This is the same court that is currently hearing an industry challenge to the regulation.
The new rule, designed by the board’s Democratic majority, expands the legal criteria for determining whether two firms jointly employ the same workers. Unlike the old standard, which mainly considered direct, exercised control over workers’ job terms, the updated standards will also take into consideration indirect and reserved, unexercised control.
While joint employer disputes are rarely litigated at the NLRB, this rule change aims to provide more clarity to employers and employees about their rights and responsibilities under the National Labor Relations Act.
For the original article with further details, please visit Bloomberg Law.