In September, the NLRB issued a notice of proposed rulemaking with respect to the joint employer rule. The existing rule, updated in 2020, “provided that a ‘putative joint employer must possess and actually exercise substantial direct and immediate control over the employees’ terms and conditions of employment in a manner that is not limited and routine.’” Under the new rule, the NLRB “may find that two or more statutory employers are joint employers of the same statutory employees if they ‘share or codetermine those matters governing the essential terms and conditions of employment.’”
Business Takeaway: The proposed rule largely reinstates the standard in place prior to the 2020 rule, thereby broadening the terms by which companies may be considered joint employers. Comments on the proposed rule are due by November 7, 2022, with a final rule to follow. In the meantime, contact us at 414-446-8800 or firstname.lastname@example.org if you have questions about the specifics of the proposed rule or the current law on this subject.