NLRB reinstates prior joint-employer standard

The National Labor Relations Board yesterday overruled a 2015 board decision adopting a new joint-employer standard and returned to the previous standard that governed joint-employer liability, concluding that the reinstated standard adheres to the common law and is supported by the NLRA’s policy of promoting stability and predictability in bargaining relationships. “In all future and pending NLRB cases, two or more entities will be deemed joint employers under the National Labor Relations Act if there is proof that one entity has exercised control over essential employment terms of another entity’s employees…in a manner that is not limited and routine,” the board said. The Coalition to Save Local Businesses, whose members include the AHA, applauded the decision and urged Congress to swiftly codify it into law. “We urge the Senate to build upon the progress we have seen in the House, with last month’s bipartisan passage of the Save Local Business Act, and act swiftly to codify this direct control standard,” said CSLB Executive Director Michael Layman.