1851

The&nbsp;<a href="https://www.nlrb.gov/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=nlrb-withdraws-appeal-on-joint-employer-rule-after-judges-rejection-2726814" target="_blank" rel="nofollow">U.S. National Labor Relations Board (NLRB)</a> has decided to drop its appeal against a judge's decision that struck down a rule which would have required many companies to be considered joint employers of certain contract and franchise workers, according to&nbsp;<a href="https://www.investing.com/news/economy-news/us-labor-board-drops-bid-to-revive-rule-on-contract-franchise-workers-3527867?utm_source=1851franchise.com&utm_medium=article&utm_campaign=nlrb-withdraws-appeal-on-joint-employer-rule-after-judges-rejection-2726814" target="_blank" rel="nofollow">Reuters</a>. This rule would have necessitated these companies to engage in collective bargaining with unions representing these workers. Despite still believing in the legality of its&nbsp;<a href="https://1851franchise.com/understanding-the-nlrbs-joint-employer-rule-and-its-impact-on-franchising-2724321">“joint employers” rule,</a> the NLRB chose to withdraw its appeal to reconsider the issues identified by U.S. District Judge&nbsp;<a href="https://www.linkedin.com/in/cambarker/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=nlrb-withdraws-appeal-on-joint-employer-rule-after-judges-rejection-2726814" target="_blank" rel="nofollow">J. Campbell Barker</a>.The 2023 rule, which was invalidated, would have classified companies as joint employers if they had control over crucial working conditions such as pay, scheduling, and discipline, even if that control was indirect or not exercised. This rule replaced a&nbsp;<a href="https://1851franchise.com/franchises-to-face-increased-legal-pressure-under-proposed-nlrb-rule-2719677">2020 regulation from the Trump administration</a>, which required companies to have “direct and immediate” control to be considered joint employers — a standard that was more favorable to business groups. Judge Barker, a Trump appointee, ruled that the 2023 rule was overly broad and violated federal labor law, as it could designate companies as employers even without significant control over workers’ conditions.The NLRB’s move to cease its defense of the rule represents a significant shift, especially following&nbsp;<a href="https://www.reuters.com/world/us/biden-vetoes-bid-repeal-us-labor-board-rule-contract-franchise-workers-2024-05-03/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=nlrb-withdraws-appeal-on-joint-employer-rule-after-judges-rejection-2726814" target="_blank" rel="nofollow">President Joe Biden's veto in May</a> of a Republican-supported measure aimed at repealing the rule. While the NLRB and unions argue that the rule is essential for ensuring companies participate in collective bargaining and are accountable for labor law violations, business groups and many Republicans contend that it would cause confusion regarding employer status, disrupting franchise and contracting operations.For more information on the “joint employers” rule, check out these related 1851 Franchise articles:

NLRB Drops Appeal on Joint Employer Rule | Legal Update 2024

1851 Franchise

The decision reflects the agency's plan to reconsider issues in controversial regulation impacting contract and franchise workers.

NLRB Withdraws Appeal on Joint Employer Rule After Judge's Rejection

nlrb-withdraws-appeal-on-joint-employer-rule-after-judges-rejection

CapitalSpring

What Makes a Successful Franchise Investment Partner: Understanding What To Look For  

What Makes a Successful Franchise Investment Partner: Understanding What To Look For Beyond the Check

franchise-investment-partner-capitalspring

Wild Bill's Craft Beverage Company

Fueled by Freedom: How This Veteran Franchisee Is Expanding Wild Bill’s Across New England

wild-bills-veteran-franchisee-expansion-new-england

Melting Pot

Photo of Melting Pot table with chocolate fondue and "Cheers to 50 Years" plate

Melting Pot Evolution Sets the Stage for the Next 50 Years

evolution-design

DRYmedic Restoration

image of drymedic restoration franchise brand

Why DRYmedic Restoration Is the Franchise Built for the Climate Era — And Why Now Is the Time to Join

drymedic-restoration-franchise-opportunity

From Startups to Franchises: How a Serial Entrepreneur Masters Scalable Growth

carlos-hesano-serial-entrepreneur-dry-medic-franchise-growth

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Development Website Builder

Franchise Resources

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

California Pizza Kitchen’s Sale Is the Latest in the Era of PE-Backed Turnarounds in Franchising

california-pizza-kitchens-sale-is-the-latest-in-the-era-of-pe-backed-turnarounds-in-franchising

Buying a fitness franchise, people exercising

Boutique vs. Big Box Gym Franchises: Which Offers Best ROI in the $7 Billion Fitness Market?

buy-fitness-franchise-boutique-big-box-comparison

Pieology Pizza Enters Chapter 11 Following Costly Bid To Save Struggling Stores

pieology-pizza-files-chapter-11-bankruptcy

CNBC: McDonald’s Will Assess if Franchisees Are Offering Value for Customers Under New Standards

mcdonalds-franchise-standards-value-metric

How AI Is Transforming Restaurant Operations and Franchises

ai-impact-restaurants-franchises-human-centric-technology

AI-related job cuts, October U.S. job cuts, American job cut record

AI-Fueled Layoffs Reshape the U.S. Job Market — And Highlight Franchising’s Resilience

ai-job-cuts-franchising-path-forward

Paris Baguette Welcomes Zac Sulma as New Chief Operating Officer

new-coo-zac-sulma

Photo of group of dogs standing together in day care facility

Top Pet Boarding and Day Care Franchise Opportunities for 2025

top-pet-boarding-daycare-franchises

A Practical Playbook: Who To Call First When Franchising Your Business

franchising-your-business-who-to-call-first

Do You Qualify? A Look at the Chick-fil-A Franchise Requirements

do-you-qualify-a-look-at-the-chick-fil-a-franchise-requirements

The Top 15 Pet Wellness and Vet Care Franchises for 2025

top-pet-wellness-franchise-opportunities

image of jerome hanway from right at home Las Cruces, New Mexico 1851 franchise franchisee spotlight

Jerome Hanway Is Building His Right at Home Franchise Around His Mission To Serve

right-at-home-franchise-las-cruces-jerome-hanway

NLRB Withdraws Appeal on Joint Employer Rule After Judge's Rejection

MORE STORIES LIKE THIS