Home > HR compliance > Labor relations > NLRB abandons Browning-Ferris Industry joint employer standard
Brightmine office worker working on her laptop

NLRB abandons Browning-Ferris Industry joint employer standard

Learn how the NLRB’s withdrawal of the 2023 Browning‑Ferris rule keeps the 2020 joint‑employer standard in place and maintains current interpretations.

|

Read time:

1–2 minutes

Written by:

Share

The National Labor Relations Board (NLRB) published a rule today officially withdrawing the Biden NLRB’s 2023 standard for determining joint employer status and reinstating the earlier standard adopted during the first Trump administration.  The action is purely ministerial and creates no practical change, but does provide certainty in this area, particularly for employers that use a franchise model of operations.

During the Biden administration, the NLRB made a push to return to the Browning-Ferris interpretation through rulemaking. That standard is based on whether an entity has the authority to control terms and conditions of employment, either directly or indirectly, even if it does not actively exercise that authority. The 2023 rule was vacated just days before it would have taken effect in March 2024.

Because the Biden-era rule was never implemented, the new rule is more formality than substance, and the current interpretation of joint employment by the NLRB will continue to rely on the 2020 rule. Under that standard, an entity may be considered a joint employer of a separate employer’s employees only if it both possesses and exercises “substantial direct and immediate control” over the employees’ essential terms of employment.

The NLRB’s joint-employer rule does not affect joint-employer tests under other laws, such as the Fair Labor Standards Act.

Share


Robert Teachout

Written by:


Navigate HR complexity with confidence

With Brightmine, you can build powerful people strategies, implement best practices and set your organization up for a brighter future.

Learn how our tools, resources and automation can empower you and your team.

You may also be interested in…

Commentary and Insights

Thou shalt not use ChatGPT? Handling religious objections to AI at work

As AI becomes more common in the workplace, employers may encounter employees who object to its use on …

Charts

Franchisor protection laws by state

by the Brightmine Editorial Team Many states have laws that protect franchisors from liability for the labor and …

Charts

Right to work states

Learn which states have right-to-work laws and what they mean for employers, employees, unions, and workplace policies across …

Topics on this page


About the author

Legal Editor

Areas of expertise: Labor relations, Performance appraisals and promotions, Succession and workforce planning, HR professional development, Employment contracts, HR strategy, Organizational exits, Leading Practice Guides, Webinars

Sign up to receive expert HR insights from Brightmine

    LNRS Data Services Limited and its affiliates may contact you about relevant solutions, services, events and industry insights. You can opt-out via the unsubscribe link in the communications that you receive or by contacting us.