Senate Blocks NLRB’s New Joint-Employer Standard
On Wednesday April 10th, the Senate voted 50-48 on House Joint Resolution 98 (also known as the Congressional Review Act), which would repeal the National Labor Relations Board’s joint-employer rule. Following the passing of the bill, this will now be sent to President Joe Biden’s desk for a signature, however he has widely been expected to veto this.
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 Teas 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
For More Information, we covered the joint employer in webinars, which you can watch below: