Update Applicable to:
All employers utilizing third-party companies for businesses.

What happened?
On September 6, 2022, the U.S. National Labor Relations Board (NLRB) delivered employers a proposal to revise its standard for determining joint-employer status under the National Labor Relations Act (the Act).

What are the details?
Under the proposed rule, two or more employers would be considered joint employers if they “share or codetermine those matters governing employees’ essential terms and conditions of employment,” such as wages, benefits, and other compensation, work and scheduling, hiring and discharge, discipline, workplace health and safety, supervision, assignment, and work rules. 

The NLRB proposes to consider both direct evidence of control and evidence of reserved and/or indirect control over these essential terms and conditions of employment when analyzing joint employer status,

Our source, Littler, has several key points and more information covered below:

Public members may file comments on the NLRB’s proposal on or before November 7, 2022.  Replies to comments filed during the initial comment period must be filed with the NLRB on or before November 21, 2022.  The NLRB will review these comments, then address or reject arguments raised by them in a final rule.

For more information, please see the links below:

U.S. National Labor Relations Board (NLRB)

NLRB Proposal

Article 1Article 2Article 3

What do employers need to do?
Employers should review the links above and be on the lookout for more updates regarding the NLRB proposal. Vensure will continue to communicate any updates as new is received.