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ARTICLE · 02 OCTOBER 2015

NLRB Refines Standard For Determining Joint Employer Status

This decision is expected to impact collective bargaining with employers that use staffing companies and franchisors, who may indirectly control employees of franchisees.

United StatesEmployment and HR

In Browning-Ferris Industries of California, a 3-2 decision issued on August 27, 2015, the National Labor Relations Board departed from its long-standing principles for determining joint-employer status. In the decision, the Board held that two entities are joint employers if: (1) they are both employers within the meaning of the common law; and (2) they share or codetermine those matters governing the essential terms and conditions of employment (i.e., hiring, firing, discipline, supervision, job responsibilities, work hours, breaks, rules, etc.).

The Board determined that Browning-Ferris Industries of California, Inc., the owner and operator of a recycling facility, was a joint-employer with Leadpoint Business Services, a temporary staffing agency, which employed and provided workers to staff the Browning-Ferris facility. The local union had sought to represent the employees provided by Leadpoint to Browning-Ferris based on a joint employer theory. In finding that

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