The National Labor Relations Board has changed its joint-employer rule, making it easier for entities doing business with each other to be deemed joint employers. The new rule goes further than any earlier joint-employer standard in two ways: (1) by making clear that indirect (or even unexercised) control is sufficient to prove joint-employer status, and (2) by dropping the requirement that there be enough control to permit meaningful collective bargaining. Businesses need to begin preparing for the new rule by mapping each business relationship for potential joint-employment exposure.
NLRB Makes Joint Employment the Rule, Not the Exception
By Christopher Foster, Marjorie C. Soto Garcia, Sandra M. DiVarco and Alexander Randolph on December 19, 2023
Posted In Employment
Christopher FosterChris Foster advises leading companies and wealthy families in labor and employment matters. Chris has extensive experience handling union organizing and decertification campaigns, unfair labor practice investigations, trials and appeals. He provides strategic planning on the addition and divesting of unionized operations and rapid response tactics to economic warfare (e.g., strikes, pickets and pressure campaigns).Read Chris Foster's full bio.
Marjorie C. Soto GarciaMarjorie C. Soto Garcia’s labor and employment practice covers single plaintiff and class action litigation, employment counseling, traditional labor (including union activity and collective bargaining), and M&A and complex transactions. She regularly defends employers in state and federal lawsuits alleging discrimination, harassment, retaliation, wrongful termination, wage and hour violations, violations of the Fair Credit Reporting Act (FCRA), Private Attorney General Act (PAGA) actions and unfair labor practice charges under the National Labor Relations Act (NLRA). Marjorie is additionally experienced in managing complex transactions (including M&A), regularly providing clients with strategic advice on potential risks and practical, business-oriented solutions. She is also experienced in dealing with trade secret, confidentiality, non-compete and non-solicit matters in employment and separation contracts. Read Marjorie C. Soto Garcia's full bio.
Sandra M. DiVarcoSandra (Sandy) M. DiVarco focuses her practice on the representation of hospitals and health systems. She has counseled health care facility and system clients regarding all aspects of health law transactions and health system restructurings. Read Sandra DiVarco's full bio.
Alexander RandolphAlexander Randolph focuses his practice on all aspects of employment law. He has experience managing complex Private Attorney General Act and class action matters as well as litigating single plaintiff discrimination, retaliation and harassment cases. Read Alexander Randolph's full bio.
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