NLRB Joint-Employer Standard: A Synopsis of the 2023 Final Rule

• November 28, 2023

• Shelley M. Jackson , Krieg DeVault LLP
• Chloe N. Craft , Krieg DeVault LLP

On October 27, 2023, the National Labor Relations Board (the Board) published a new rule regarding the joint-employer standard as applied for purposes of the National Labor Relations Act (NLRA). The 2023 final rule, which goes into effect on February 26, 2024, rescinds and replaces the previous final rule, “Joint Employer Status Under the National Labor Relations Act,” in effect since 2020. The 2023 final rule removes control-based restrictions that, while prevalent throughout past joint-employer case law, the Board has determined run afoul of common law agency principles. In the Board’s view, rooting the joint-employer doctrine in common law agency principles is more consistent with the NLRA, as well as overarching policy considerations outlined in Section 1 of the NLRA. This significant rulemaking by the Board will transform the collective bargaining landscape and should inspire entities with potential joint employment exposure to pay close attention as the effective date approaches.

ARTICLE TAGS

• In-House Counsel Practice Group
• Labor and Employment