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NLRB Joint Employer Standard

By Rebekah Mintzer
October 02, 2014

A reworking of the National Labor Relations Board's (NLRB) joint employer standard appears to be a near certainty. The first sign of a major change on the horizon came in May when the board issued a call for briefs on the current standard, in relation to a case that the Teamsters filed against Browning-Ferris Industries of California Inc., a waste-management services company. Then in July, NLRB general counsel Richard Griffin Jr. threatened to charge franchisor McDonald's USA over violations that allegedly occurred at franchisee-owned restaurants.

An Ogletree, Deakins, Nash, Smoak & Stewart webinar held in August, “Joint Employers and the NLRB: Potential Changes May Impact All Employers,” explained what a new joint employer standard might look like and what the practical impacts might be. Although the joint employer standard is often discussed in the context of nationwide fast-food places such as McDonald's, it's clear that a change in NLRB thinking on the issue would likely have effects far more widespread, reaching contractors and subcontractors, not just franchisors and franchisees.

Brian Hayes, a shareholder at Ogletree Deakins and a cochairman of the firm's traditional labor practice group, as well as a former member of the NLRB, said that it looks like changes to the standard are on their way ' and employers should stay aware. “Contrary to some reports, the NLRB hasn't decided anything with respect to this issue yet,” he said. “But the operative word is yet.”

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