The National Labor Relations Board (NLRB) issued a new rule on October 26, 2023, that broadens the scope of who qualifies as a joint employer under the National Labor Relations Act. The new rule replaces that of 2020 put in place under the Trump Administration, introducing the provision that additional entities may now also be regarded as joint employers.
The relevance of the identity of a joint employer under U.S labor law is critical in terms of responsibilities for bargaining agreements and labor law violations. Should an entity meet the criteria for a joint employer according to the new guidelines, it could be face direct implications in these areas.
The changes, however, are not yet set in stone. After initially adopting the new rule, the NLRB has proceeded to extend its deadline, thereby allowing for further discussions and modifications. The changing landscape makes it necessary for legal professionals to remain vigilant about significant amendments like these that might affect their corporate and clientele strategies.
For more detailed information scrutinizing the new rule, its potential implications, and the case triggering these changes, check Holland & Knight LLP’s document.
Keep watch for further updates on the evolving legal position regarding joint employers, as the extension of the rule’s deadline implies it could endure additional modifications.
In staying on top of these changes and forecasting their potential implications, legal professionals can device proactive strategies to mitigate any negative impacts or exploit any opportunities that may arise from these regulatory shifts.