NLRB Proposed Joint Employer Rule Can Have Major Impact on Franchises

The National Labor Relations Board has proposed rolling back a rule that makes companies liable if their franchisees and contractors commit labor violations, according to a Politico report.

Under the recently proposed rule, a company would only be considered a joint employer of a separate company’s workers - and therefore liable - “if the two employers share or co-determine the employees’ essential terms and conditions of employment, such as hiring, firing, discipline, supervision, and direction,” according to the article.

This proposal would undo the board’s 2015 Browning-Ferris opinion, an Obama-era rule that made the companies liable, according to the article.

The current NLRB has a three-member Republican majority, all of whom were appointed under the Trump administration, and one Democrat who was appointed under the Obama administration and dissented from the proposal, according to Politico.

Read the full article at Politico.