The National Labor Relations Board (NLRB) is proposing to change the standard for when two (2) employers that do business together (joint ventures) are considered to be joint employers, and thus liable for one another’s unfair labor practices.
On Sept. 6,2022 the NLRB issued a proposed Rule change that would replace the Rule that took effect on April 27, 2020. Under that Rule, an employer could be a joint employer of another entity, if it had direct and immediate control over the essential terms and conditions of employment of the other entity’s workers.
However, under the proposed Rule change, two or more employers would be considered joint employers if they “share or codetermine those matters governing employees’ essential terms and conditions of employment.”
Comments on the proposed Rule are due Nov. 7, 2022. The NLRB is expected to act quickly on finalizing and enforcing the rule new reviews comments.
Stuart J. Oberman, Esq.
Stuart J. Oberman is the founder and President of Oberman Law Firm. Mr. Oberman graduated from Urbana University and received his law degree from John Marshall Law School. Mr. Oberman has been practicing law for over 30 years, and before going into private practice, Mr. Oberman was in-house counsel for a Fortune 500 Company.
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