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
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January 20
In today’s news and commentary, SEIU advocates for a wealth tax, the DOL gets a budget increase, and the NLRB struggles with its workforce. The SEIU United Healthcare Workers West is advancing a California ballot initiative to impose a one-time 5% tax on personal wealth above $1 billion, aiming to raise funds for the state’s […]
January 19
Department of Education pauses wage garnishment; Valero Energy announces layoffs; Labor Department wins back wages for healthcare workers.
January 18
Met Museum workers unionize; a new report reveals a $0.76 average tip for gig workers in NYC; and U.S. workers receive the smallest share of capital since 1947.
January 16
The NLRB publishes its first decision since regaining a quorum; Minneapolis labor unions call for a general strike in response to the ICE killing of Renee Good; federal workers rally in DC to show support for the Protecting America’s Workforce Act.
January 15
New investigation into the Secretary of Labor; New Jersey bill to protect child content creators; NIOSH reinstates hundreds of employees.
January 14
The Supreme Court will not review its opt-in test in ADEA cases in an age discrimination and federal wage law violation case; the Fifth Circuit rules that a jury will determine whether Enterprise Products unfairly terminated a Black truck driver; and an employee at Berry Global Inc. will receive a trial after being fired for requesting medical leave for a disability-related injury.