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ARTICLE · 09 MARCH 2020

NLRB Final Rule On Joint Employer Standard

On February 26, 2020, the National Labor Relations Board ("NLRB") issued its final rule on the standard for determining joint-employer status for businesses and employees covered by the...

United StatesEmployment and HR
Stites & Harbison PLLC
Stites & Harbison PLLC
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On February 26, 2020, the National Labor Relations Board ("NLRB") issued its final rule on the standard for determining joint-employer status for businesses and employees covered by the National Labor Relations Act ("NLRA"). The issuance of the final rule reverses the prior standard for determining joint-employer status set forth in the NLRB's 2015 decision in Browning-Ferris Industries of California, Inc., where the Board held that a company could be deemed a joint employer if its control over the essential terms and conditions of another business's employees was merely indirect, limited and routine, or contractually reserved but never exercised. Unlike the prior standard established under Browning-Ferris, the final rule clearly addresses and identifies the control for creating joint-employer status under the NLRA, providing the much needed guidance businesses and employees were seeking. As stated by NLRB Chairman John Ring in a press release for the new rule, "This

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