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NLRB proposes change to joint-employer standard

Joe Mont | September 13, 2018

On Friday, the National Labor Relations Board will publish a Notice of Proposed Rulemaking in the Federal Register regarding its joint-employer standard, a policy that will particularly affect franchise owners.

Under the proposed rule, an employer may be found to be a joint-employer of another employer’s employees only if the employer possesses and exercises substantial, direct and immediate control over the essential terms and conditions of employment and has done so in a manner that is not limited and routine. 

Those terms and conditions of employment include hiring, firing, discipline, supervision, and direction. 

Indirect influence and contractual reservations of authority would no longer be sufficient to establish a joint-employer relationship.

“Rulemaking in this important area of the law would foster predictability, consistency, and stability in the determination of joint-employer status,” the NLRB said in a statement. The goal, it says,...

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