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New NLRB “Joint Employer Ruling” Could Have Wide-Ranging Implications

In a recent decision, the impact of which will not be clear for some time, the National Labor Relations Board has significantly modified and relaxed its standard for finding that a company that uses a staffing contractor or that has franchises is a joint employer of the employees of the contractor or franchise. The new Board standard is whether the parent company possesses even indirect or potential control of some of the terms and conditions of employment of the employees in question.

While the current ruling has many case-specific implications, it is certain to be challenged so that parent companies do not find themselves obligated to bargain with unions regarding the contracted or franchise workers, or responsible for labor law violations.

Stay tuned.


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