NLRB Rolls Back Joint-Employer Rule: A Detailed Analysis of the Recent Changes

The National Labor Relations Board (NLRB) has recently issued its final rule on the joint-employer standard under the National Labor Relations Act (NLRA). This article provides an in-depth analysis of the changes brought about by the new rule and explores its implications for employers.

Background

Under the previous administration, the NLRB introduced a joint-employer rule in 2020. However, the current NLRB has decided to roll back this rule, citing the need for a more comprehensive evaluation of the standard.

Delayed Effective Date

Initially slated to take effect on December 26, 2023, the NLRB announced a delay in the effective date until February 26, 2024. This delay aims to allow for the resolution of any legal challenges that may arise.

Prospective application

It’s important to note that the new rule will only be applied on a prospective basis to cases filed after its effective date. This means that ongoing cases filed under the previous joint-employer standard will not be affected.

Comparison with the 2020 rule

The 2020 joint-employer rule introduced the concept of “substantial direct and immediate control” over an employee’s essential terms and conditions of employment to determine joint-employer status. This rule emphasized the need for the exercise of control in order to establish a joint-employer relationship.

Alignment with the Browning-Ferris decision

The new rule and its preamble, consisting of nearly 73 pages, largely draws from the 2015 Browning-Ferris decision. This landmark decision expanded the definition of joint employment by considering entities that exert enough indirect control or have the “reserved right” to control essential terms and conditions of employment.

Definition of Essential Terms and Conditions

Essential terms and conditions under the new rule include wages, benefits, hours of work and scheduling, assignment of duties, supervision, work rules, discipline, tenure of employment, and working conditions. This comprehensive list ensures that factors contributing to an employee’s employment experience are adequately covered.

Impact of the Mere Right to Control

A noteworthy departure from the previous rule is the recognition that even the mere right to control or dictate a single essential term or condition, even if not exercised in practice, can create a joint-employer relationship. This lowers the bar for determining joint-employer status, potentially leading to greater liability for employers.

Potential challenges and recommendations

As with any significant change, the new joint-employer rule is expected to face legal challenges. Employers should exercise caution when utilizing staffing agencies or franchise models, as the lowered bar for joint-employer status may expose them to unforeseen liabilities. Consulting legal counsel and reviewing contracts and agreements in light of the new rule is recommended.

The NLRB’s recent rollback of the joint-employer rule has significant implications for employers. The delayed effective date and prospective application provide an opportunity for parties to adapt to the new standard. It is crucial for employers to understand the changes brought about by the new rule and take steps to ensure compliance, mitigate risks, and protect their interests in the evolving landscape of joint employment relationships.

Explore more

Maryland Data Center Boom Sparks Local Backlash

A quiet 42-acre plot in a Maryland suburb, once home to a local inn, is now at the center of a digital revolution that residents never asked for, promising immense power but revealing very few secrets. This site in Woodlawn is ground zero for a debate raging across the state, pitting the promise of high-tech infrastructure against the concerns of

Trend Analysis: Next-Generation Cyber Threats

The close of 2025 brings into sharp focus a fundamental transformation in cyber security, where the primary battleground has decisively shifted from compromising networks to manipulating the very logic and identity that underpins our increasingly automated digital world. As sophisticated AI and autonomous systems have moved from experimental technology to mainstream deployment, the nature and scale of cyber risk have

Ransomware Attack Cripples Romanian Water Authority

An entire nation’s water supply became the target of a digital siege when cybercriminals turned a standard computer security feature into a sophisticated weapon against Romania’s essential infrastructure. The attack, disclosed on December 20, targeted the National Administration “Apele Române” (Romanian Waters), the agency responsible for managing the country’s water resources. This incident serves as a stark reminder of the

African Cybercrime Crackdown Leads to 574 Arrests

Introduction A sweeping month-long dragnet across 19 African nations has dismantled intricate cybercriminal networks, showcasing the formidable power of unified, cross-border law enforcement in the digital age. This landmark effort, known as “Operation Sentinel,” represents a significant step forward in the global fight against online financial crimes that exploit vulnerabilities in our increasingly connected world. This article serves to answer

Zero-Click Exploits Redefined Cybersecurity in 2025

With an extensive background in artificial intelligence and machine learning, Dominic Jainy has a unique vantage point on the evolving cyber threat landscape. His work offers critical insights into how the very technologies designed for convenience and efficiency are being turned into potent weapons. In this discussion, we explore the seismic shifts of 2025, a year defined by the industrialization