Federal Appeals Court Rules on Joint Employer Case

The U.S. Court of Appeals for the D.C. Circuit has ruled that the National Labor Relations Board's (NLRB's) rules for determining when two different employers -- such as business and its franchisees -- are "joint employers" are too broad.  This is a positive development for NATSO members and employers in general, as the broad standard has injected much uncertainty and costs into many business operations, particularly such as travel centers where the franchisee-franchisor relationship is ubiquitous.
 
The NLRB is currently in the process of reevaluating its joint employer standard, and has proposed reverting back to a standard that was in place before the Obama Administration began implementing the current standard. NATSO will be filing detailed comments on this rulemaking that will support the proposed switch back to the original joint employer standard.
 
A broad joint employer standard will expose more companies to legal liability for how their subcontractors, staffing agencies, and franchisees treat their employees. The ruling also makes businesses more susceptible to workforce unionization by imposing new collective bargaining obligations and allowing unions the ability to strike or picket a large corporate entity rather than the individual location where there is a dispute. 
 
Obviously this is an extraordinarily fluid situation that continues to generate uncertainty and confusion in the employer community.  NATSO will continue analyzing the recent joint employer decision and report additional details and developments in the coming days.


via Business Feeds

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