Decision Could Prove Very Problematic for Construction Firms
The National Labor Relations Board issued a disappointing but anticipated decision on Thursday that relaxes the standard for determining when two companies constitute “joint employers” under the National Labor Relations Act. As reported here, AGC submitted a joint amicus brief with other employer groups in the case last year. The brief urged the NLRB to maintain the current standard, under which separate entities are considered joint employers only if they share direct control over, or co-determine, essential terms and conditions of employment. The brief also urged the Board to refrain from relaxing the standard to the point where indirect or potential control would be enough. Consistent with the current Board’s penchant for expanding employer liability, the NLRB changed the standard to require consideration of whether an employer has exercised indirect control over terms and conditions of employment through an intermediary, or reserved the right to do so.