The National Labor Relations Board today unveiled its final rule that changes the definition of a “joint employer” under the National Labor Relations Act.
A business must possess and exercise “substantial direct and immediate control over one or more essential terms and conditions of employment of another employer’s employees” in order to be considered a joint employer under the a rule, which was first proposed in September.
The rule also clarifies what’s considered “essential terms and condition of employment” and what constitutes as “direct and immediate control.”
“This final rule gives our joint-employer standard the clarity, stability, and predictability that is essential to any successful labor-management relationship and vital to our national economy,” NLRB Chairman John Ring said in a statement.
“With the completion of today’s rule, employers will now have certainty in structuring their business relationships, employees will have a better understanding of their employment circumstances, and unions will have clarity regarding with whom they have a collective-bargaining relationship,” he added.
Most businesses, including long-term care operators, support the rule, while many pro-labor groups oppose it. Earlier this year, several lawmakers expressed concerns about the proposed rule change and called on the board to withdraw the proposal.
