NLRB Ruling on Joint Employer Standards Seen as Anti-Business

Last Thursday, the National Labor Relations Board (NLRB) issued a 3-2 decision in the long-awaited Browning-Ferris Industries case regarding "joint employer" standards. At issue is who is liable for labor violations when two separate businesses have control over a single set of workers; such as franchising, subcontracting or utilizing a temporary staffing agency. Largely seen as a win for labor groups and an impediment for the business community, the NLRB’s decision overturns a three-decade old standard in favor of a new joint employer test tilted toward employees and away from large corporations; potentially making labor violations against a company’s company or subcontractor the larger company’s legal responsibility.

The dissenting opinion from Board members Philip Miscimarra and Harry Johnson states that "...the majority redefines and expands the test that makes two separate and independent entities a 'joint employer' of certain employees. This change will subject countless entities to unprecedented new joint-bargaining obligations that most do not even know they have, to potential joint liability for unfair labor practices and breaches of collective-bargaining agreements, and to economic protest activity, including what have heretofore been unlawful secondary strikes, boycotts, and picketing."

To learn more about the rule’s implications NRMCA encourages all to attend the NLRB update education session being held at NRMCA’s ConcreteWorks 2015 in San Antonio, TX, September 20-22. Click here for more information or contact Kevin Walgenbach at kwalgenbach@nrmca.org.