Greg Volynsky is a student at Harvard Law School.
In Todays News & Commentary, the NLRB yesterday issued its final rule for determining joint-employer status. The rule is the latest in a long saga.
In 1944, the Supreme Court decided in NLRB v. Hearst Publications that the NLRA includes independent contractors. Three years later, Congress adopted the Taft-Hartley Act, which excluded independent contractors from the definition of “employees” under the NLRA. The question remained, however, how to distinguish between independent contractors and employees.
In Boire v. The Greyhound Corporation (1964), the Supreme Court stated that determining whether employers “possess[] sufficient control over the work of the employees” to constitute joint employers was a factual inquiry for the Board. The following year, the Board held that joint employers “share, or codetermine, those matters governing essential terms and conditions of employment.” The Third Circuit adopted similar language in 1982.
For the subsequent three decades, the NLRB narrowed the criteria for joint-employer status. The Board assessed whether employers “meaningfully affect[]”employment terms and conditions, while setting aside unexercised authority to impact employment. Additionally, the control exerted needed to be direct and not merely “limited and routine.”
In 2015, the Board consciously departed from decades of Board precedent with Browning-Ferris. Here, the NLRB took into account both reserved and indirect control when determining joint-employer status. The D.C. Circuit subsequently upheld this broader Browning-Ferris standard.
In 2020, after failing to overturn Browning-Ferris via adjudication, the Trump Board promulgated a rule reverting to the narrower pre-Browning Ferris standard. However, two years later, the NLRB issued a Notice of Proposed Rulemaking, proposing to a return to the Obama-era rule. The NLRB published the final rule today. The new rule factors in both (1) authorized but unexercised control and (2) indirect control over employment conditions.
Daily News & Commentary
Start your day with our roundup of the latest labor developments. See all
May 5
SAG-AFTRA strikes tentative deal; DOL set to decide on Biden overtime rule; IATSE files unfair labor practice charges against the Kennedy Center
May 4
Trump signs order to expand retirement plan access; Eleventh Circuit upholds NLRB determination that security guard lieutenants can unionize; REI workers launch consumer boycott.
May 3
Florida further restricts public employee unions; Yale begins negotiations with postdoc union, and online tabletop game developers seek to unionize.
May 1
Workers and unions organize May Day; and Volkswagen challenges NLRB regional directors.
April 30
US Circuit Court of Appeals renders decision on Jefferson Standard test; construction subcontractors settle over wage theft in Minnesota; union and immigrant groups urge walkout.
April 29
DOJ sues for discrimination against US citizens; Musk and DOJ pause litigation on AI discrimination bill; USTR hosts forced labor tariff hearings.