NLRB revises rule setting joint employer standard
The National Labor Relations Board (NLRB) has taken action to return to a more definite joint employer framework tied primarily to the exercise of substantial, direct, and immediate control. This framework reshapes how businesses may be held responsible for obligations involving contracted, franchise, or otherwise shared workforces. Here is what employers need to know.
Background
On October 27, 2023, the Board published a final rule that rescinded and replaced a 2020 rule regarding the standard for determining joint employer status under the National Labor Relations Act (NLRA). On March 8, 2024, the U.S. District Court for the Eastern District of Texas issued an order vacating the 2023 rule.
Given this background, the Board is seeking to revise its rules and regulations to replace the vacated 2023 rule with the previous version of its rules that remain in effect.
February 2026 development