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ARTICLE · 05 MARCH 2020

NLRB Issues Final Rule On Joint-Employer Status And Returns To Pre-2015 Standard

Duane Morris LLP
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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 under the National Labor Relations Act.

United StatesEmployment and HR

On February 26, 2020, the National Labor Relations Board (NLRB) issued its final rule on the standard for determining joint-employer status under the National Labor Relations Act. This long-anticipated final rule comes nearly a year and a half after the NLRB published the proposal for a new joint employer rule, and follows a lengthy comment period and several high-profile cases relating to the joint employer standard.

History of the Board's Joint-Employer Rule

The NLRB's joint-employer standard has had a complicated history over the past several years. In 2015, during the Obama administration, the Board overruled more than 30 years of precedent and expanded the joint-employer standard. In that 2015 case, Browning-Ferris, it held that two entities could be joint employers based on the mere existence of reserved joint control or based on indirect control, even when such control is "limited and routine." This meant that the NLRB could find that an entity was a joint

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