New NLRB Rule for Joint Employer Status

The NLRB issued a final rule establishing a new standard for joint employer status. Under this rule, an entity is considered a joint employer “if the employers share or codetermine those matters governing employees’ essential terms and conditions of employment.” The rule defines the term “to share or codetermine those matters governing employees’ essential terms and conditions of employment” as meaning that an employer possesses the authority to control (whether directly, indirectly, or both), or to exercise the power to control (whether directly, indirectly, or both), one or more of the employees’ essential terms and conditions of employment.” When the rule applies, two companies, as joint employers, will have to deal with collective bargaining. The final rule is effective December 26, 2023. #IdeaoftheDay