NLRB Joint Employer Standard: Not Just for Franchises
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A reworking of the National Labor Relations Board’s joint employer standard appears to be a near certainty. The first sign of a major change on the horizon came in May when the board issued a call for briefs on the current standard, in relation to a case that the Teamsters filed against Browning-Ferris Industries of California Inc., a waste-management services company. Then in July, NLRB general counsel Richard Griffin Jr. threatened to charge franchisor McDonalds USA over violations that allegedly occurred at franchisee-owned restaurants.
An Ogletree, Deakins, Nash, Smoak & Stewart webinar held this week, “Joint Employers and the NLRB: Potential Changes May Impact All Employers,” explained what a new joint employer standard might look like and what the practical impacts might be. Although the joint employer standard is often discussed in the context of nationwide fast food joints like McDonalds, it’s clear that a change in NLRB thinking on the issue would likely have effects far more widespread—reaching contractors and subcontractors, not just franchisors and franchisees.
Brian Hayes, a shareholder at Ogletree Deakins and co-chair of the firm’s traditional labor practice group as well as a former member of the NLRB, said in the webinar that it looks like changes to the standard are on their way—and employers should stay aware. “Contrary to some reports, the NLRB hasn’t decided anything with respect to this issue yet,” he said. “But the operative word is yet.”
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