NLRB throws in towel on Joint Employer Rule

The National Labor Relations Board (NLRB) today withdrew its appeal of a district court ruling that had blocked its new joint employer rule.

As a result, the current employer-friendly standard for determining joint employer status under federal labor law will remain in place for the foreseeable future.

“We are pleased … that the court’s ruling to block the NLRB’s radical and overbroad joint employer standard is now final,” said Ben Brubeck of the Associated Builders and Contractors, part of a coalition of business groups that had filed the lawsuit seeking to block the rule.

The NLRB issued its final rule on joint employment last fall. In March, three days before the rule was to supposed to take effect, a federal district court vacated the 2023 rule and restored a 2020 rule issued by the Trump-era board.

The NLRB appealed the court’s decision in May. But today, the Board withdrew that appeal, saying it wanted to consider its options for addressing joint employment.

Because the withdrawal of the appeal did not result in the case being dismissed “with prejudice,” the NLRB could still try again to appeal the court’s decision.

NLRB press secretary Kayla Blado said the Board decided to withdraw its appeal in light of “the litigation posture” of the 2023 joint employer rule.