On August 27, 2015, in a 3-2 decision, the National Labor Relations Board (NLRB) announced a new standard for determining joint employer status under the National Labor Relations Act.  The Board’s decision in Browning-Ferris Industries, Inc. significantly expands the Board’s joint employer doctrine.  Specifically, NLRB will no longer require that an employer directly and immediately exercise control over essential terms and conditions of employment to be deemed a joint employer; instead, the NLRB will evaluate whether an employer has the right to control such terms and conditions. 

Under the new standard, more business entities will be subject to obligations and liability under the National Labor Relations Act.  And the decision will have a dramatic influence on the way businesses structure their contracts insofar as they include any employment terms for shared or joint workforces.  Franchisors, contractors and firms that use workers supplied by other companies should be aware of the new standard and carefully structure (or restructure) their business relationships if they wish to avoid joint employer status.

Click here for a members-only discussion of the Board’s Browning-Ferris decision, including the new joint employer standard, the scope of the decision, and the how it will impact NACS members.