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The Standard for Determining Joint-Employer Status

The National Labor Relations Board (the Board) has proposed a regulation establishing the standard for determining whether two employers, as defined in Section 2(2) of the National Labor Relations Act, are a joint employer of a group of employees under the Act. 

Under the proposed regulation, an employer may be considered a joint employer of a separate employer's employees only if the two employers share or codetermine the employees' essential terms and conditions of employment, such as hiring, firing, discipline, supervision, and direction. More specifically, to be deemed a joint employer under the proposed regulation, an employer must possess and actually exercise substantial direct and immediate control over the essential terms and conditions of employment of another employer's employees in a manner that is not limited and routine.

 

The Notice of Proposed Rulemaking (NPRM) regarding the definition of joint employer was published in the Federal Register on September 14, 2018, which can be found here.

 

The comment period for this NPRM has closed.  Comments submitted in response to this NPRM can be found here.

 

A Fact Sheet about the proposed rulemaking regarding the standard for determining joint-employer status can be found here.

 

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