NLRB Issues Controversial Decision Redefining Joint Employer Status
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APPLIES TO All Employers |
EFFECTIVE August 27, 2015 |
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In a 3-2 decision involving Browning-Ferris Industries of California, the National Labor Relations Board revised its standard for determining joint-employer status last Thursday, August 27, 2015.
Specifically, the Board defined an employment relationship as one where the employer either exercises control or has the right to exercise control over the work of the employee. The latter is an added factor meant to bring NLRB standards in line with existing law. Thus, in determining joint employer status, where a “user employer reserves a contractual right to set a specific term or condition of employment for a supplier employer’s workers, it retains the ultimate authority” over the employee and “legal consequences may follow from this choice.”
