Update On NLRB Joint Employer Rule

The National Labor Relations Board (NLRB or Board) has appealed the decision of a federal court that vacated the Board’s new joint employer rule. 

Issued in October 2023, the new joint employer rule changed the standard for determining when two or more separate companies are a joint employer of employees under the National Labor Relations Act. The rule was quickly challenged, however, by business groups and members of the U.S. Congress.  

Congress managed to pass a congressional resolution blocking the rule from taking effect, but President Biden vetoed the resolution on May 3. Unfortunately, the House of Representatives failed to overcome that veto.  

While the appeal plays out over the new joint employer standard the Board wants to adopt, employers can continue to rely on the business friendly standard adopted in 2020. As always, we will keep you posted of developments.

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.