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NLRB Issues Final Rule on Joint Employer Standard, Eliminates Browning-Ferris Test

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April 27, 2020

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The Browning-Ferris saga appears to be coming to a close. In 2015, the National Labor Relations Board (NLRB) issued a ruling saying that joint employer status can be determined based on control, direct or indirect, of the worker’s terms and conditions of employment. After some back and forth on the validity of this rule, the NLRB recently issued its final rule defining joint employer status under the National Labor Relations Act (NLRA), aligning it with the U.S. Department of Labor’s own rule, and invalidating the standard set forth in Browning.

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Keeping Up with the NLRB – The Browning-Ferris Joint-Employer Standard is Back on Top

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February 26, 2018

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Keeping up with the National Labor Relations Board (“NLRB”) can be a challenge. A mere two months after its December 2017 ruling in Hy-Brand Industrial Contractors, Ltd., which determined a joint-employer relationship by looking at an employer’s actual control over employees, the NLRB vacated the Hy-Brand decision, causing the joint-employer standard to revert back to the August 2015 Browning-Ferris decision, which follows an indirect and reserved control standard for determining joint-employer status.

The reversal is the result of a technicality – a conflict of interest of one of the board members involved in the Hy-Brand decision. Prior to becoming an NLRB board member, William Emanuel worked for a private law firm that represented one of the companies involved in the Browning-Ferris case. When this relationship came to light, the NLRB issued an order vacating its Hy-Brand decision, stating that the board member should have been disqualified from participating in the ruling. For now, the Browning-Ferris standard is back on top. However, in light of the NLRB’s Memorandum 18-02, employers can likely expect to see continued changes on this and other topics. Stay tuned.

Action Items

  1. Review potential joint-employer relationships with legal counsel to minimize exposure.
  2. Subscribers can call our HR On-Call Hotline at (888) 378-2456 for further assistance.

Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser.

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