On November 16th the National Labor Relations Board (NLRB) extended the effective date of its recent rule on determining the standard for joint-employer status from December 26, 2023, to February 26, 2024. 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.
On November 9th the U.S. Chamber of Commerce and a coalition of business groups filed a lawsuit challenging the rule in the U.S. District Court for the Eastern District of Texas. In its announcement, the NLRB notes that the extension is intended to facilitate resolution of legal challenges with respect to the rule, and that new standard will only be applied to cases filed after the rule becomes effective. LeadingAge will follow the litigation as it unfolds, and provide other information for members, over the coming weeks.
