{"id":20085,"date":"2024-03-13T07:16:00","date_gmt":"2024-03-13T11:16:00","guid":{"rendered":"https:\/\/techservealliance.memberhost.io\/news\/nlrb-publishes-final-joint-employer-rule-what-does-this-mean-for-the-staffing-industry\/"},"modified":"2024-10-11T11:16:25","modified_gmt":"2024-10-11T15:16:25","slug":"nlrb-publishes-final-joint-employer-rule-what-does-this-mean-for-the-staffing-industry","status":"publish","type":"post","link":"https:\/\/techservealliance.org\/nlrb-publishes-final-joint-employer-rule-what-does-this-mean-for-the-staffing-industry\/","title":{"rendered":"NLRB Publishes Final Joint Employer Rule: What Does This Mean for the Staffing Industry?"},"content":{"rendered":"
\n

TechServe Alliance is providing this update to keep you informed about changes to labor and employment regulations that have received a lot of attention in the press; the new Joint Employer Rule is expected to have minimal, if any, impact on our industry. <\/em>We expect litigation and possibly Congressional action to block the Rule. We will continue to keep you posted, and please contact us if you have any questions.<\/em><\/h4>\n<\/blockquote>\n

The National Labor Relations Board (NLRB), on October 27, 2023, published the Final Rule<\/strong> on the Joint Employer Status<\/strong>. As expected, the new rule, effective in 60 days on December 26, 2023, restores the Obama Administration framework established in the NLRB\u2019s 2015<\/a> Browning Ferris Industries<\/em><\/a> decision. TechServe\u2019s HR Compliance Bulletin<\/strong> provides more information.<\/p>\n

TechServe Alliance, HR Compliance Bulletin<\/strong><\/p>\n

TechServe members as IT\/engineering staffing firms should consult with their own legal counsel to determine if or how the Rule itself impacts them\u2014the general staffing industry model<\/a> contemplates shared control of essential terms and conditions of employment. The new Rule, however, adds two changes that could impact a particular staffing firm\u2019s client arrangement: (1) joint-employer status is established when the right to control exists, regardless of whether that right is exercised, and (2) indirect control is sufficient to establish joint-employer status.<\/p>\n

While staffing industry representatives are not overly concerned about the new Rule, major law firms alerted their business clients that their relationships with staffing firms and outsourcing companies could now present significant legal risk. Hunton Andrews Kurth warns, \u201cAs a result [of the new Rule], businesses that rely on staffing companies and outsourcing arrangements should examine their contracts and relationships with service providers to ensure they understand their joint employer risks and consider changes that may reduce those risks under the new joint employer rule.\u201d TechServe member end-client firms may want to revisit contract terms following this advice.<\/p>\n

While the Rule is scheduled to go into effect on December 26, 2023, we will continue to monitor the status. The International Franchise Association, with the support of many in the business community, has already launched a campaign to overturn the Rule. IFA asked Congress to set aside the Rule under the Congressional Review Act, and they are expected to file a lawsuit.<\/p>\n

American Staffing Agency<\/em>, \u201cStatement on NLRB Final Rule on Joint Employer Status<\/a>,\u201d October 27, 2023<\/p>\n

HR Drive<\/em>, \u201cWho\u2019s most affected by NLRB\u2019s joint employer final rule?\u201d<\/a> October 30, 2023<\/p>\n

Hunton Andrews Kurth<\/em>, \u201cNLRB\u2019s Expanded Joint-Employer Rule Could Impact Third-Party Staffing and Outsourcing<\/a>,\u201d October 30, 2023<\/p>\n

Franchise Wire, <\/em>\u201cIFA Urges Congress to Undo Revised Joint Employer Rule<\/a>,\u201d October 27, 2023<\/p>\n

 <\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

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