District Court Strikes Down Joint-Employer Final Rule

On March 8, Judge J. Campbell Barker of the U.S. District Court for the Eastern District of Texas invalidated the joint-employer rule issued in October 2023 by the National Labor Relations Board (NLRB). District Judge Barker deemed the rule too broad and in violation of the National Labor Relations Act (NLRA).

“The rule would treat virtually every entity that contracts for labor as a joint employer because virtually every contract for third-party labor has terms that impact, at least indirectly, essential terms and conditions of employment,” Judge Barker wrote.

The traditional joint-employer standard – requiring direct and immediate control over workers’ terms and conditions of employment – is now in effect. The NLRB likely will appeal the ruling to the U.S. Circuit Court for the Fifth Circuit.

To read the Chamber of Commerce of the United States of America et al. v. National Labor Relations Board et al. final order, click here. To read Judge Barker’s full opinion in the case, click here.