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NRLB to consider rulemaking in joint-employer standard

May 10, 2018

The National Labor Relations Board announced it is considering rulemaking to address the standard for determining joint-employer status under the National Labor Relations Act, at the request of Chairman John Ring. The board in February returned to its 2015 standard after an NLRB ethics official vacated a recent joint-employment ruling.

“Whether one business is the joint employer of another business’s employees is one of the most critical issues in labor law today,” Ring said. “The current uncertainty over the standard to be applied in determining joint-employer status under the act undermines employers’ willingness to create jobs and expand business opportunities.”

He continued, “I am committed to working with my colleagues to issue a proposed rule as soon as possible, and I look forward to hearing from all interested parties on this important issue that affects millions of Americans in virtually every sector of the economy.”

The NLRB has begun the internal process necessary to consider rulemaking on the joint-employer standard and the proposal is now included in the regulatory agenda. Any proposed rule would require approval by a majority of the five-member board. The next step would be the issuance of a Notice of Proposed Rulemaking.