A new federal appeals court ruling complicates the National Labor Relations Board’s effort to limit “joint employment” liability for businesses.
The NLRB acted properly in 2015 when it adopted a more expansive test for determining when companies in franchise, staffing, and other relationships should be considered joint employers for liability and collective bargaining purposes, the U.S. Court of Appeals for the D.C. Circuit held Dec. 28. The board broke new ground with that test by saying that a company that has the authority to exert control over another company’s workforce could be required to bargain with or be held liable ...