On March 8, U.S. District Judge J. Campbell Barker of the Eastern District of Texas struck down a National Labor Relations Board (NLRB) final rule, issued in October 2023, that would have established a new and broader standard for determining whether separate entities are considered “joint employers” under the National Labor Relations Act (NLRA). This standard is important because, if an organization is considered to share or codetermine certain terms and conditions of employment for another organization’s employees, both organizations may be required to bargain with a union representing jointly employed workers, and each organization may be liable for unfair labor practices committed by the other. During a 2022 public comment period, LeadingAge wrote to express serious concerns about the expansive breadth of the NLRB’s proposed standard, and the Texas court’s decision is welcome news. The effect of the court’s ruling is that the new standard does not take effect, and that a rule established in 2020 – which the now-vacated NLRB rule would have rescinded – remains the operative joint employer regulation. In a March 9 statement, the Board expressed disappointment, noting that it is reviewing the decision and actively considering next steps in the case, which appears to signal that the agency may file an appeal. LeadingAge will provide additional analysis of the court’s decision soon and monitor for new developments relating to this case.
