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The National Labor Relations Board (NLRB) Joint Employer decision was handed down last week, ruling that companies may be considered joint-employers with their contractors and franchisees. The ruling will increase the potential responsibility of certain companies, as they may now be held liable for labor violations committed by their contractors.
From nlrb.gov:
In the decision, the Board applies long-established principles to find that two or more entities are joint employers of a single workforce if (1) they are both employers within the meaning of the common law; and (2) they share or codetermine those matters governing the essential terms and conditions of employment.
Opponents of the decision warn the ruling could hurt a variety of businesses such as manufacturers and construction firms, restaurants, hotels, cleaning services, and retailers, as well as staffing agencies. This decision may also make union involvement with those companies more likely.
The full ramifications of this ruling are not yet known—for example, any effect on determining employee count for FMLA and ACA purposes—but we’ll be closely following this matter and posting updates as more information becomes available.
To learn more about how GTM keeps businesses of all sizes informed and compliant with issues such as this one, contact us at (518) 373-4111.
