On October 26, the National Labor Relations Board released a final rule as to the standard for determining joint employer status (effective December 26, 2023), also supplying a fact sheet on the new rule. The rule rescinds and replaces the 2020 final rule (effective April 27, 2020) and more closely resembles the 2015 Browning Ferris decision. However, the NLRB clarifies that the new rule provides further guidance as to parties’ “rights and responsibilities when more than one statutory employer employs particular workers” and clarifies that “an employer must control (or have authority to control) one or more of a specific and limited list of essential terms and conditions of employment to give rise to a joint employment relationship.”
Business Takeaway: This news is most pertinent to those joint employers who modified arrangements to meet the 2020 rule or entered a joint employment relationship in the years thereafter. If you have questions about these changes or need assistance in analyzing employment terms and conditions as they relate to the new rule, contact us at firstname.lastname@example.org.