November 3, 2023 • News

NLRB Issues New Standard for Determining Joint-Employer Status

On October 26, 2023, the National Labor Relations Board (NLRB) issued its Final Rule to determine whether multiple employers jointly employ certain employees. Multiple entities 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:

• Wages, benefits and other compensation
• Hours of work and scheduling
• The assignment of duties to be performed
• The supervision of the performance of duties
• Work rules and directions governing the manner, means and methods of the performance of duties and the grounds for discipline
• The tenure of employment, including hiring and discharge
• Working conditions related to the safety and health of employees

The Final Rule takes effect December 26, 2023.
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.