NAHB Supports Proposed Change to Joint Employer Standard

Filed in Codes and Standards, Labor, Legal by on September 13, 2018 0 Comments

The National Labor Relations Board (NLRB) will publish a notice of proposed rulemaking on Sept. 14 in the Federal Register inviting interested parties to submit comments on its proposed joint employer standard.

The proposal would codify the standard for determining whether two employers are joint employers of a group of workers under the National Labor Relations Act, thereby resolving the NLRB’s controversial 2015 decision in the case of Browning-Ferris Industries that radically expanded the traditional test for establishing joint employment.

In a press release, NLRB said that under its proposed rule, “an employer may be found to be a joint-employer of another employer’s employees only if it possesses and exercises substantial, direct and immediate control of the essential terms and conditions of employment.”

Indirect influence and contractual reservations of authority would no longer be sufficient to establish a joint-employer relationship.

NAHB believes regulatory action by the NLRB to restore and codify the traditional definition of joint employment in which a company must exercise “direct and immediate control” over a worker in a business-to-business relationship is a necessary and important step in the right direction.

NAHB plans to submit detailed comments in support of the proposal.

For more information, contact Alexis Moch at 800-368-5242 x8407 or David Jaffe at x8317.

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