Risk Insight: NLRB Issues Notice of Joint Employer Status Rule

Compliance, Employee Benefits, Property & Casualty

On September 6, 2022, the National Labor Relations Board (NLRB) issued a Notice of Proposed Rulemaking regarding joint-employer status under the National Labor Relations Act (NLRA). The new proposed rule rejects the previous administration rules implemented in 2020 which allowed for less restrictive standards.

Specifically, the new proposed rule rejects the 2020 rule’s focus on the “direct and immediate” control standard in favor of an “indirect, reserved” control standard. Likely, the new rule would dramatically expand situations in which the joint-employer status exists.

The NLRB is currently accepting public comments on the proposed rules until November 7, 2022.

Key Takeaway

The rule regarding joint-employer status by the NLRB is a proposed rule at this juncture. As such, the NLRB will accept public comments until November 7, 2022 as part of their rulemaking process. Once the period for public comments is finalized, NLRB will begin drafting final regulations. M3 will follow all developments closely and provide additional information as necessary.

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