Daily Observer
US District Judge J Campbell Barker in Tyler agreed with the challengers to the "joint employers" rule, including the US Chamber of Commerce , that it was too broad and violates federal labour law. The rule, issued in October, had been set to take effect on Monday.
The NLRB is expected to appeal Barkers decision to the New Orleans -based 5th US Circuit Court of Appeals .
Industries such as manufacturing and construction rely heavily on staffing agencies and contractors to provide workers, and franchisers such as McDonalds , Burger King, and Dunkin Donuts that are not typically involved in franchisees day-to-day workplace issues.
The rule would treat companies as "joint employers" of contract and franchise workers when they have control over key working conditions such as pay, scheduling, discipline and supervision, even if that control is indirect or not exercised.