NLRB Proposes Changes To Joint Employer Rule

The National Labor Relations Board (NLRB) recently issued a Notice of Proposed Rulemaking that would alter the definition of when two employers doing business with one another become joint employers. This definition is important because it determines when one employer is liable for the other employer's unfair labor practices.

Joint employers under the National Labor Relations Act (NLRA) both must bargain with the union representing the jointly employed workers. As a result, both employers are liable if one employer commits unfair labor practices. Likewise, both employers are subject to economic pressure from union actions, such as strikes or picketing. Furthermore, if the employees of one entity unionize, the employees of the second entity also will have a duty to bargain with the union and potentially unionize.