The National Labor Relations Board (NLRB) recently issued a decision that dramatically altered the standard to assess “joint employer liability” under the National Labor Relations Act, 29 U.S.C. §§ 151-169 (NLRA), creating a potential legal morass for employers and their investors, franchisers, affiliate companies and contract relationships.
In Browning-Ferris Indus. of Cal., 362 NLRB No. 106 (Aug. 27, 2015), the Board changed a decades-old standard for deciding when multiple businesses are joint employers under the NLRA. The new standard makes it easier for labor unions to hold a nonunion company responsible for the collective bargaining obligations and the labor law violations of a unionized employer or one undergoing union organizing.
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