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Labor Law (Spring 2024)

Standard for Determining Joint Employer Status Under the NLRA -- Final Rule

88 FR 73946, published Oct. 27, 2023

The Board issued its Final Rule addressing the Standard for Determining Joint-Employer Status under the National Labor Relations Act.

Under the new standard, an entity may be considered a joint employer of a group of employees if each entity has an employment relationship with the employees and they share or codetermine one or more of the employees’ essential terms and conditions of employment, which are defined exclusively as: (1) wages, benefits, and other compensation; (2) hours of work and scheduling; (3) the assignment of duties to be performed; (4) the supervision of the performance of duties; (5) work rules and directions governing the manner, means, and methods of the performance of duties and the grounds for discipline; (6) the tenure of employment, including hiring and discharge; and (7) working conditions related to the safety and health of employees.

In adopting this new standard, the final rule rescinded the 2020 final rule that was promulgated by the prior Board.