The National Labor Relations Board Issues Decision Redefining Joint-Employers

On August 27, 2015, the National Labor Relations Board issued its decision in Browning-Ferris Industries of California, Inc., 362 NLRB No. 186, which significantly broadened the definition of "joint employer". Under the more expansive standard, "two or more entities are joint employers of a single workforce if (1) they are both employers within the meaning of the common law [i.e., they both exert sufficient control over, or right to control, the workforce, all factors considered]; and (2) they share or co-determine those matters governing the essential terms and conditions of employment."

This new definition will likely result in the Board finding joint-employer relationships in cases where the previous standard of direct and immediate control over conditions applied. It will also have a far-reaching impact by expanding the sources of liability under the National Labor Relations Act for unfair labor practice, union organizing and possibly at the bargaining table with unions. Prior to this ruling, a company had to have direct and immediate control of the terms and conditions of the employee(s).

The justification by the board was that it did not "best serve the National Labor Relations Act of encouraging the practice and procedure of collective bargaining." According to a release issued by the Board with the decision, "with more than 2.87 million of the nation's workers employed through temporary agencies in August 2014, the Board held that its previous joint employer standard has failed to keep pace with changes in the workplace and economic circumstances."

Companies that use contract employees, staffing agencies and franchises are most likely to see an immediate impact. Companies that have a parent-subsidiary relationship could now have this standard applied as well. Companies that use contract employees, have vendors or suppliers, use staffing agencies, are franchisors, or subsidiaries should consider reviewing contracts and agreements to determine the level of direct and indirect control they have over another company's employees. 

Barrett McNagny LLP

Legal Disclaimer

The information contained in the Barrett McNagny LLP website is for informational purposes only and should not be considered legal advice on any subject matter. Furthermore, the information contained on our website may not reflect the most current legal developments. You should not act upon this information without consulting legal counsel.

Your transmission and receipt of information on the Barrett McNagny LLP website, or sending an e-mail to one of our attorneys or staff, will not create an attorney-client relationship between you and Barrett McNagny LLP. If you need legal advice and want to establish an attorney-client relationship with Barrett McNagny LLP, please contact one of our attorneys by telephone, email, or other means of communication, and allow the attorney to confirm that the firm does not represent other persons or entities involved in the matter and that the firm is willing to accept representation. Until such confirmation is provided by one of our attorneys, you should not transmit information to us that you consider confidential. If you do provide information to us, and no attorney-client relationship is established, the information will not be considered confidential or privileged, and our receipt of such information will not preclude us from representing another client in a matter adverse to you.

Any links to other websites are not intended to be referrals or endorsements of those sites.

Privacy Policy

Terms of Use

ADA Compliance

Transparency Cover Rule: Machine-Readable Files

Contact Us
Hello,
My name is
 
and I am a(n)
seeking legal counsel in the area of 
.
Please
me at
as soon as you can.

Thank you for contacting us!

A representative will be in touch with you shortly.

An attorney-client relationship will NOT be formed merely by sending an email to Barrett McNagny, LLP or to any of its attorneys. Please do not send any information specific to your legal needs until you obtain approval from a Barrett McNagny, LLP attorney, as the content of such email will not be considered confidential or privileged. By sending us an email, you confirm your understanding of this notification. If you agree, you may use the e-mail links on this page to contact an attorney. By providing your mobile number, you consent to receive text messages from Barrett McNagny regarding your case and related services. Please note that standard message and data rates may apply.
YesNo