Business pushes NLRB for strict definition of joint employment

A coalition of business groups is weighing in ahead of a new rule on joint employment expected to be issued later this year by the National Labor Relations Board. The groups, which include the U.S. Chamber of Commerce, the National Retail Federation and the International Franchise Association, want the NLRB to require any business classified as a joint employer to have “direct and immediate control” of employees.

The NLRB hopes to institute a new, strict standard for joint employment as an antidote for the looser definition set in its 2015 Browning-Ferris ruling. Under that standard, a company might be considered a joint employer if it exerts even indirect control over another organization’s employees. The issue affects employers that obtain labor through temp agencies, as well as businesses that operate on a franchise model.