As previously reported on PERKS, on February 22, 2024, a U.S. District Court Judge issued a stay delaying the effective date of the NLRB’s broad new joint-employer rule. Following the stay, on March 8, 2024, the Judge struck down the rule, which would greatly expand the scope of who constitutes a “joint employer” under the National Labor Relations Act.
For the time being, the NLRB’s 2020 rule requiring that a putative joint employer “possess and exercise…substantial direct and immediate control” over essential terms and conditions of employment to be considered a joint employer remains in effect.
However, the joint-employer saga is far from over. The NLRB has already announced it is “actively considering next steps in this case,” which could include an appeal to the U.S. Court of Appeals for the Fifth Circuit (and eventually, the United States Supreme Court). A petition for review of the rule has also been filed in the U.S. Court of Appeals for the D.C. Circuit. Stay tuned for updates!
The decision enjoining the rule US Chamber of Commerce v. NLRB, E.D. Tex., No. 6:23-cv-00553, 3/8/24 can be reviewed at: Bloomberg Law