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ARTICLE · 01 OCTOBER 2015

An Impractical And Dangerous Ruling

Seyfarth Shaw LLP
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The myriad complexities of today's business relationships show the impracticality of the N.L.R.B.'s new rule.

United StatesEmployment and HR

The myriad complexities of today's business relationships show the impracticality of the N.L.R.B.'s new rule. Under their recent decision, the status of "employer" is not limited to companies that exert direct control over their workers. "Indirect" control, and the potential to exercise control, now suffice.

So what does that mean for the many businesses that work with multiple subcontractors?

For example, manufacturers contract with shipping companies for distribution, and with suppliers of raw materials and component parts. Corporations often utilize vendors for catering, janitorial and maintenance work. And general contractors routinely work with a dozen or more subcontractors, each of whom provide different construction specialties.

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