On Nov. 16, the National Labor Relations Board (NLRB) extended the effective date of its recent rule on determining the standard for joint-employer status to Feb. 26, 2024, to facilitate resolution of legal challenges with respect to the rule. Notice of the extension will be published in the Federal Register, according to a news release.
The NLRB issued its final rule altering the standard for determining joint-employer status under the National Labor Relations Act. The rule replaces the Board’s 2020 final rule, which had addressed the damaging standard adopted by the Obama-era Board in the Browning-Ferris Industries (BFI) legal case. TRSA is reviewing the rulemaking and will provide more details once processed.
The final rule appears to be very closely aligned with the Board’s Notice of Proposed Rule Making and represents a drastic expansion to joint-employer status for the purposes of the act. Notably, the final rule explicitly states that either possessing the authority to control one or more essential terms and conditions of employment (regardless of whether it is exercised) OR exercising the power to control indirectly one or more essential terms and conditions of employment (regardless of whether the power is exercised directly) is sufficient to establish an entity’s status as a joint employer. This means that either indirect or reserved control may stand alone as a basis for the finding of a joint-employer relationship, and the existence of either – without regard to the extent of the reserved or indirect control – indicates joint-employer status.
“This rule is going to have a far-reaching impact on the linen, uniform and facility services industry,” said Kevin Schwalb, TRSA’s vice president of government relations. “Our industry’s companies will now be open to liabilities and responsibilities of the companies they serve.”
Click here to review the comments that TRSA, along with its industry partners, submitted to the NLRB.
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