NLRB Issues Joint-Employer Regulation

On February 25, 2020, the National Labor Relations Board (“NLRB”) issued its long-awaited Joint–Employer Regulation. The rule adopted anticipated standards, mandating that to be a joint-employer, a business must “possess and exercise . . . substantial direct and immediate control over one or more essential terms and conditions of employment of another employer’s employees.” Further, the NLRB defines those essential terms as: “wages, benefits, hours of work, hiring, discharge, discipline, supervision, and direction.” The new rule will deeply reduce the liability of franchisers and other large users of contracted workers for unfair labor practices and significantly limit opportunities for company-wide union organizing.