NLRB Issues Final Rule Lowering Standard For Determining Joint Employer Status

You may not think that you can be liable for the treatment of the employee(s) of another company, but under certain circumstances, you could be. Companies may not realize that, legally, they may be deemed to be the employer of individuals who are formally employed by another entity. That concept is called joint employment, and both (or all) joint employers of an employee may be responsible for compliance with the law as to that employee.

In late October, the National Labor Relations Board (the "Board") issued its final rule creating a new standard for determining joint-employer status under the National Labor Relations Act (the "Act"). On November 16, 2023, the Board extended the effective date of the final rule to February 26, 2024 to facilitate resolution of legal challenges to the rule. This new standard rescinds the Board's 2020 final rule under which joint employment was only found when an employer had substantial, direct and immediate control over essential