NLRB Issues New Joint Employer Rule Requiring Direct Control (1)

The National Labor Relations Board released details of a new rule that restricts the circumstances in which franchisers and businesses that use workers hired by third parties can be held jointly liable for violations of federal labor law.

The NLRB’s new formulation of joint-employer liability requires that a company exercise “substantial direct and immediate” control over the most important elements of a worker’s job, like discipline or hiring and firing, to be considered the worker’s employer. The final rule will be formally published in the Federal Register on Wednesday. It will take effect April 27.

The rule has major economic ...