NLRB Initiates Rulemaking on Joint-Employer Status, Changes Impact Staffing Business Model

On September 6, 2022, the National Labor Relations Board (NLRB) released a Notice of Proposed Rulemaking (NPRM) to rescind and replace the April 2020 regulation determining joint-employer status. The NPRM was published in the Federal Register today; comments are due by November 7, 2022.

The proposed rule would generally restore the Obama NLRB’s Browning Ferris decision that established a joint-employer relationship where indirect control over working conditions—including scheduling, hiring, firing, and supervision—could be established. The current April 2020 rule requires direct control over contract and franchise workers to establish a joint employer relationship.

TechServe Alliance supported the current rule; the proposed rule could negatively impact the way our members do business and structure contracts. Over the next few days, our Government Relations Team will complete a review of the proposed regulations and report back with more information. We will ask TechServe members to share stories of how the proposed rule could impact your businesses in preparation for filing comments. In the meantime, please email us with any questions.