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NLRB’s joint employment theory faces key court test (Bloomberg BNA)

March 10, 2017

The National Labor Relations Board on Thursday defended its theory that companies can be classified as joint employers if they “share or codetermine” the employment terms of a group of workers, Bloomberg BNA reports. Browning-Ferris Industries of California urged the US Court of Appeals for the District of Columbia Circuit to reject the new NLRB standard, which critics have called a threat to franchising and other business models. The NLRB adopted the standard in a 2015 ruling that Browning-Ferris was a joint employer with Leadpoint, a staffing firm that provided workers to the recycling company. The board overruled 30-year-old precedents that companies should share legal responsibility for employees only if they exercise “direct and immediate control” over the workers.