The National Labor Relations Board spoiled a lot of in-house attorneys’ late August vacations with some unwelcome news. On Thursday, the board released a long-awaited ruling on the Browning-Ferris Industries case that reworks the definition of “joint employer” in a manner that could cause major headaches for many companies.
In a 3-2 ruling that split along party lines, the NLRB decided that Browning-Ferris Industries Inc., a waste management company, should be considered a joint employer with Leadpoint, a staffing agency. The case is expected to have widespread impact on many business relationships, including those between companies and their contractors and franchisors and franchisees. In addition it empowers union organizers to cast a wider net in their attempts to unionize workers.
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