In October of 2023, the National Labor Relations Board issued a final rule pertaining to joint employment, which has drawn significant backlash from congress, which resulted in the House of Representatives utilizing its powers to issue a resolution overturning the NLRB’s rule. According to sources, should the resolution make it out of the senate, the president will veto it.
The NLRB’s rule on joint employers created a new standard to help determine joint employment status for workers, rescinding a rule passed by the previous NLRB in 2020. The new standard stipulates:
- an entity may be considered a joint employer of a group of employees if each
- entity has an employment relationship with the employees and they share or codetermine one or more of the employees’ essential terms and conditions of employment, which are defined exclusively as: (1) wages, benefits, and other compensation; (2) hours of work and scheduling; (3) the assignment of duties to be performed; (4) the supervision of the performance of duties; (5) work rules and directions governing the manner, means, and methods of the performance of duties and the grounds for discipline; (6) the tenure of employment, including hiring and discharge; and (7) working conditions related to the safety and health of employees.
This rule would aid many non-unionized workplaces and sectors, providing increased worker power to those who are employed by subcontractors, a situation in which millions of American workers find themselves.
The rule is primarily opposed by Congressional Republicans who argue it creates undue burdens on small business owners and could stymie job growth although several Democrats, including Senator Joe Manchin have voiced their disdain for the rule and have vowed to fight it.
Outside the capitol building, the rule also faces a lawsuit from a panoply of business groups, including the Chamber of Commerce and lobbies representing the hospitality and retail industries, among others. In February a Texas judge required the effective date of the rule be pushed back into March.
