In a notable move, the National Labor Relations Board (NLRB) has altered its joint-employer rule, pushing boundaries further than before in making it easier for entities working mutually to be acknowledged as joint employers. This change implies that coupled entities are now commonly subject to more elements such as union organizing campaigns, collective bargaining, and associated operational restraints, strikes, and unfair labor practice investigations and litigation.
As reported in JD Supra, the new rule is more expansive than any preceding joint-employer standards in two fundamental aspects:
- The rule now establishes that indirect control or even unexercised control can classify entities as joint employers.
- There is no requirement for entities to have exercised direct and immediate control over essential employment terms of another entity’s employees.
This novel development by the NLRB is expected to bring significant repercussions for employer relationships, hence requiring a more attentive and calculated approach towards conducting business.