NLRB Extends Timeline For New Joint Employer Rule

In October, the National Labor Relations Board (NLRB or Board) issued its new standard for determining whether two or more separate companies are a “joint employer” of employees under the National Labor Relations Act. The Board has now announced that this rule will not become effective until February 26, 2024.

The Board’s decision to push back the effective date of this new standard is due to a lawsuit filed to challenge the rule. The U.S. Chamber of Commerce and other business groups have asked a federal district court in Texas to stop the Board from implementing the new joint employer standard. The Board is also facing pressure from the U.S. Congress where a Senate committee contends the NLRB violated federal procedures when it adopted the new rule.

We will keep you updated on these legal challenges to the new joint employer standard. 

KZA Employer Report articles are for general information only; they are not intended and should not be construed to be legal advice. Reading or replying to such articles does not establish an attorney-client relationship. In addition, because the subject matters and applicable laws discussed in Employer Report articles are often in a state of change and not always applicable to every type of business entity or organization, readers should consult with counsel before making decisions based on the same.