On May 3, President Biden vetoed a Congressional resolution that would have overturned 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.
Reflecting serious concerns about the rule, the U.S. House of Representatives voted in January to pass such a resolution, and, by a narrow margin, the Senate voted to do the same in April. The President’s action was expected, as he had earlier promised to veto the resolution if it passed both chambers. Meanwhile, even without the repeal that would have resulted if the President had elected to sign the resolution, the NLRB’s final rule has been blocked by a federal court. The effect of the court ruling is that, for now, the 2023 rule does not take effect. The NLRB is likely to appeal the ruling, and we will continue to monitor developments relating to this litigation and the underlying rule.
