NRMCA Welcomes NLRB Decision on Joint-Employer Rule

Earlier this week, the National Labor Relations Board (NLRB) published a final rule for overhauling the “joint-employer” scheme, securing a less stringent application than the previous administration. Prior to the final rule, the joint-employer rule stemmed from an Obama Administration NLRB ruling in a case known as Browning-Ferris, which more closely ties infractions of franchisees to their franchisors. While the current Trump Administration’s NLRB had attempted to overturn Browning-Ferris in a case dubbed Hy-Brand, the NLRB inspector general issued a report noting that NLRB member William J. Emanuel, a Trump Administration appointee, handled related cases at his previous law firm and therefore should have recused himself from the Hy-Brand decision. That development subsequently moved the other Board members to withdraw the ruling in Hy-Brand which overturned the Browning-Ferris ruling; thus reinstating the more stringent Browning-Ferris joint-employer standard.

Today’s final rule managed to circumvent the previous contentious issues in favor of loosening the requirements for what constitutes a joint-employer. NRMCA has advocated ardently against the Browning-Ferris ruling and welcomes the NLRB’s new joint-employer final rule. For more on the new joint-employer definition and to review the final rule please click here. The final rule will become effective 60 days after publication in the Federal Register.

For more information, contact Kevin Walgenbach at kwalgenbach@nrmca.org.