Federal Labor Officials Withdraw Appeal of Joint Employer Rule

Late last week, the National Labor Relations Board (NLRB) formally withdrew its appeal of a federal court’s decision to vacate the NLRB’s 2023 Joint Employer Final Rule. Earlier this year, after multiple stakeholders brought litigation against the NLRB for its finalized joint employer rule, the U.S. District Court for the Eastern District of Texas sided with the plaintiffs and vacated the rule. The NRLB initially appealed the decision, but has since abandoned the effort. The 2023 Final Joint Employer Rule attempted to dramatically expand the liability of businesses for labor law violations committed by other businesses they may work with closely.

NRMCA worked individually and with coalition partners to oppose the rule when it was first proposed in 2022. The 2023 final rule rescinded and replaced the 2020 joint employer rule promulgated by the Trump Administration, which provided more certainty for employers when determining their joint employer status, including, among other issues, NLRB unfair labor practices. NRMCA supports the NLRB’s appeal withdraw, which now allows the reimplementation of the much clearer 2020 NLRB joint employer standard.

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