The National Labor Relations Board has released a final rule that expands the definition of a “joint-employer” under the National Labor Relations Act. Unions praised the new rule, but construction groups say that it does not realistically consider how the industry operates and could be disruptive to projects.
The rule, which was published in the Oct. 26 Federal Register and takes effect Dec. 26, rescinds the five-member panel’s more narrow joint-employer definition from 2020 and reverts to the interpretation set by the board in the Obama administration in the 2015 Browning-Ferris decision. The new rule places more weight on an employer’s authority to control essential terms and conditions of employment, whether or not that control is actually exercised, the NLRB says.