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New NLRB Standard Causes Compliance Joint Pains

Jaclyn Jaeger | September 9, 2015

A strong corporate culture has always been a cornerstone of a robust ethics and compliance program—but exactly how much control businesses should exert over corporate culture just got more complicated.

At issue is a ruling the National Labor Relations Board handed down in August, which jettisoned 30 years of precedent and redefined the concept of “joint employer” much more expansively. Now any company that, say, relies on other businesses for contract labor, or uses a franchise business model for its operations, has much greater risk for labor conditions at those other businesses, even though the original company is a separate entity from those partners. 

Charles Birenbaum“The ripple effect of this is huge,” says Charles Birenbaum, a shareholder of law firm Greenburg Traurig.

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