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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February 11
Hollywood begins negotiations for a new labor agreement with writers and actors; the EEOC launches an investigation into Nike’s DEI programs and potential discrimination against white workers; and Mayor Mamdani circulates a memo regarding the city’s Economic Development Corporation.
February 10
San Francisco teachers walk out; NLRB reverses course on SpaceX; NYC nurses secure tentative agreements.
February 9
FTC argues DEI is anticompetitive collusion, Supreme Court may decide scope of exception to forced arbitration, NJ pauses ABC test rule.
February 8
The Second Circuit rejects a constitutional challenge to the NLRB, pharmacy and lab technicians join a California healthcare strike, and the EEOC defends a single better-paid worker standard in Equal Pay Act suits.
February 6
The California Supreme Court rules on an arbitration agreement, Trump administration announces new rule on civil service protections, and states modify affirmative action requirements
February 5
Minnesota schools and teachers sue to limit ICE presence near schools; labor leaders call on Newsom to protect workers from AI; UAW and Volkswagen reach a tentative agreement.