On a vote of 50-48, the U.S. Senate, on April 10, voted to overturn a National Labor Relations Board (NLRB) final rule, issued in October 2023, establishing a new and broader standard for determining whether separate entities are considered “joint employers” for purposes of the National Labor Relations Act. Under the Congressional Review Act, one or both houses of Congress may take up what’s called a “joint resolution of disapproval,” as a tool to overturn a rule issued by a federal agency.
The U.S. House of Representatives voted in January to overturn the NLRB’s joint employer standard, then referred the matter to the Senate. While President Biden is expected to veto the resolution, passage by both the House and Senate shows that there are significant concerns about the rule. Meanwhile – even without the “repeal” that would result if President Biden did choose to sign the resolution, or if Congress voted to override a presidential veto – the NLRB’s final rule has been blocked by a federal court.
As was noted in this article, a Texas court struck down the rule in March, which was viewed as welcome news given LeadingAge’s serious concerns about the new standard. The effect of that court ruling is that, for now, the 2023 rule does not take effect. The NLRB may appeal, and LeadingAge will continue to monitor for developments relating to this litigation and the underlying rule.’’
