The National Labor Relations Board (NLRB) has extended the effective date of the recently published rule on determining the standard for joint employer status to Feb. 26, 2024. The new rule was to have taken effect on Dec. 26, 2023. The effective date was extended in response to legal challenges both to strengthen and to strike the rule down. The new standard will only be applied to cases filed after the rule becomes effective.
As previously posted, according to the new standard, published Oct. 26, 2023, multiple employers may be considered joint employers of a group of employees if each entity has an employment relationship with the employees and they share or codetermine one or more of the following essential terms and conditions of employment:
The rule rescinds and replaces the joint-employer rule that went into effect on April 27, 2020, which set a higher threshold of possessing and exercising “substantial direct and immediate control” over essential terms and conditions of employment to be considered a joint employer.
For more information, see the fact sheet.