NLRB Ruling on Joint Employees Could Be Headed to Court Soon

Employers and Employees Graphic Copyright Jirsak — Copyright: Jirsak

The National Labor Relations Board's (NLRB) August 2015 ruling that expanded the definition of a joint employer could be headed to court soon. On January 12, the NLRB found that Browning-Ferris Industries refused to negotiate with employees who had sought to form a union - clearing a path for potential legal action. This type of action was not possible until the NLRB found that a joint employer refused to negotiate and, as a result, enabled a court to decide if an unfair labor practice had taken place. Joint employers occur in the multifamily and other industries when the supervision of employees, like subcontractors, suppliers, vendors and temporary staff, is shared between two or more businesses.

Joint employers are required to negotiate with any union representing the jointly employed workers and share liability for National Labor Relations Act violations. According to the NLRB’s August ruling, joint employer liability can be imposed when an entity has “indirect” control and “unexercised potential” of control over another entity’s employees. However, for 30 years before this ruling entities were designated joint employers when both had “direct and immediate” control over “essential terms and conditions of employment."

Matthew Berger mberger@nmhc.org

NLRB Ruling on Joint Employees Could Be Headed to Court Soon

January 14, 2016

Staff Resource

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