More good news from the National Labor Relations Board! In a 3 to 2 decision, the NLRB has overruled its 2015 decision in Browning Ferris, which previously made it much easier for unions to prove “Joint Employer” status.
Under the reinstated standard, there must be proof that one entity has exercised control over the essential employment terms of another entity’s employees, and has done so directly and immediately – rather than indirectly – in a manner that is not limited and routine. See the attached NLRB press release for more information.
This reinstated standard is more compatible with the common law and the legislative history of the National Labor Relations Act.