President Biden Vetoes Bill That Would Have Blocked NLRB Joint-Employer Rule
On Friday May 3rd, President Biden followed through on his promise to veto the Congressional Review Act (House Joint Resolution 98), which was passed on April 10th, by the Senate. The veto can be overridden with a two-thirds majority.
As you may know, the NLRB issued a final rule for the new joint employer standard on October 26, 2023. The new joint-employer rule would have made it much easier for two or more businesses to be determined to be joint employers. Rather than focusing on the previous “direct control” standard, the new joint-employer rule looked to any type of control over several essential terms of employment, including whether indirect control existed. This joint employer rule was blocked by a federal judge in Texas on March 8, 2024.
An example would be that a franchisor would be a joint employer with a franchisee employee even if the franchisor had indirect or no control over key workplace conditions, including: pay, scheduling, discipline, and supervision.
Continue to follow us as we keep you informed of the latest joint-employer rule, because it’s not going away. Whether it is the “old” rule or the “new” rule, myHRcounsel still remains the Franchisor’s #1 solution, an outside, independent HR Services company providing actual legal advice protecting both Zor and Zee. Contact us at: info@myhrcounsel.com.
UPDATE 5/9/24- The NLRB has announced that it will appeal the ruling from a Federal Judge in Texas.
For More Information, we covered the joint employer in webinars, which you can watch below: