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
March 5
Colorado judge grants AFSCME’s motion to intervene to defend Colorado’s county employee collective bargaining law; Arizona proposes constitutional amendment to ban teachers unions’ use public resources; NLRB unlikely to use rulemaking to overturn precedent.
March 4
The NLRB and Ex-Cell-O; top aides to Labor Secretary resign; attacks on the Federal Mediation and Conciliation Service
March 3
Texas dismantles contracting program for minorities; NextEra settles ERISA lawsuit; Chipotle beats an age discrimination suit.
March 2
Block lays off over 4,000 workers; H-1B fee data is revealed.
March 1
The NLRB officially rescinds the Biden-era standard for determining joint-employer status; the DOL proposes a rule that would rescind the Biden-era standard for determining independent contractor status; and Walmart pays $100 million for deceiving delivery drivers regarding wages and tips.
February 27
The Ninth Circuit allows Trump to dismantle certain government unions based on national security concerns; and the DOL set to focus enforcement on firms with “outsized market power.”