NLRB Joint Employer Plan Would Stymie ESG Programs, Group Says

Companies will be less likely to participate in ESG programs, corporate social responsibility initiatives, and other standard-setting measures if the federal labor board broadens its test for deciding when separate companies share legal obligations for the same workers, an employer group said.

The National Labor Relations Board’s proposed rule to expand its joint employer test would make participation in environmental, social, and governance programs evidence of a joint employer relationship, according to the HR Policy Association, which represents human resource officers at large corporations.

“Such a result and the increased legal obligations and liability exposure it creates for employers will ...