NLRB Joint Employer Proposed Rule

The NLRB’s proposed rule would expand the factors that can establish a joint employment relationship to include indirect and unexercised control over the terms and conditions of a job. Employers would be considered joint employers if they co-determine “essential terms and conditions of employment,” such as scheduling, wages, and benefits. It would rescind the Trump-era joint employer rule that took effect in April 2020.  The potential for extending labor law obligations across companies is a concern in the franchising industry and for companies that source labor through contracting, temporary staffing, and other business-to-business arrangements. Employers have long argued that doing so would make it harder for workers to set their own schedules.