On May 7, the National Labor Relations Board filed notice that it will appeal a ruling by a federal judge in Texas that struck down the NLRB’s October 2023 joint employer final rule. The rule in question would have established a new and broader standard for determining whether separate entities are considered “joint employers” under the National Labor Relations Act, but the Texas court’s March 2024 decision invalidated it.
There was a legislative effort to overturn the rule, as both the House of Representatives and Senate passed a resolution of disapproval under the Congressional Review Act, but President Biden vetoed the resolution on May 3, and a May 7 vote in the House fell short of the two-thirds majority necessary to override the veto. The rule remains invalid unless and until the federal appeals court reaches a different decision. We will continue to monitor developments relating to this case and the underlying rule.
