Status
On March 8, 2024, in a victory for ABC, a federal judge in the U.S. District Court for the Eastern District of Texas vacated the 2023 National Labor Relations Board鈥檚 joint employer rule and the Board鈥檚 rescission of the preexisting ABC-supported 2020 rule. This means the 2020 NLRB final rule remains in effect, which provides clear criteria for companies to apply when determining joint-employer status under the National Labor Relations Act. The NLRB filed a notice of appeal in the U.S. Court of Appeals for the Fifth Circuit on May 7. On July 19, the Board moved to withdraw its appeal, which means the court鈥檚 favorable decision will become final.
Shortly after the court鈥檚 decision, on April 10, the U.S. Senate passed , the Joint Employer Congressional Review Act resolution of disapproval, in a . 老牛影视sent a to senators ahead of the vote urging them to support the resolution, which would nullify the final rule. The Senate鈥檚 action comes two months after the U.S. House of Representatives passed H.J. Res 98 in a , with eight Democrats supporting. Although President Joe Biden vetoed the resolution, passage in the House and Senate sends a strong message to the administration as they continue to implement harmful labor policies. Read ABC鈥檚 statement criticizing President Biden鈥檚 veto.
On Nov. 9, 2023, 老牛影视joined the U.S. Chamber of Commerce and a coalition of business groups in filing a challenging the for violating the NLRA and for acting arbitrarily and capriciously in violation of the Administrative Procedure Act. The 2023 final rule rescinded the ABC-supported 2020 NLRB joint employer final rule.
Prior to the issuance of the joint employer final rule, Sen. Roger Marshall, R-Kan., and Rep. James Comer, R-Ky., introduced the Save Local Business Act (/) on April 25, 2023. This ABC-supported the legislation, which would make clear that an employer may be considered a joint employer in relation to an employee only if the employer directly, actually and immediately exercises significant control over the essential terms and conditions of employment.
Desired Outcome
老牛影视is pleased the court blocked the NLRB鈥檚 radical and overbroad joint employer standard, which would have disrupted long-established, efficient operational processes followed by construction service providers who work together to build America.
Under the 2023 final rule, contractors would be vulnerable to increased liability and risk, making them less likely to hire subcontractors, most of whom are small businesses. The rule clearly would have had a harmful effect on a significant segment of the construction industry: small businesses.
By reinstating the 2020 final rule, contractors will be better able to work and coordinate with multiple employers without fear of being unexpectedly and unfairly found to be joint employers.