Latest delay on joint employer rule may be just the beginning

by Tammy Binford

Although a judge has so far merely delayed the effective date of the latest rule on joint employment, only time will tell the ultimate fate of the National Labor Relations Board’s (NLRB) new rule.

The rule—which has drawn fire from employer groups because it could mean more employers face joint employment liability—was originally scheduled to take effect on December 26, 2023, but the NLRB on its own delayed implementation until February 26, 2024.

Then on February 22, U.S. District Judge J. Campbell Barker in the Eastern District of Texas issued a stay, delaying the effective date until March 11. But a lawsuit is casting further doubt on the rule.

Martin J. Regimbal, an attorney with The Kullman Firm in Columbus, Mississippi, says the Texas court will consider a lawsuit filed by the U.S. Chamber of Commerce and a coalition of business groups seeking to block the rule permanently.

The NLRB is challenging whether the matter belongs before the district court or in front of a U.S. Court of Appeals.