Legislation Blocking NLRB Joint Employer Rule Moving Through Congress

On January 12th the US House of Representative passed a bipartisan Congressional Review Act (CRA) resolution by a vote of 206 to 177 to block the National Labor Relations Board (NLRB) from finalizing its new joint employer rule. Under a rule issued by the NLRB and that becomes effective Feb. 26, 2024 it would allow joint employer finding based on only indirect exercise of control or mere reservation of control. Joint employer status is important because employers can be held jointly responsible for union recognition, collective bargaining and unfair labor practices.

This new standard can disrupt long-standing standards in labor law and potentially change the way the construction industry operates in detrimental ways by changing well-settled subcontracting practices in the construction industry, where critical issues such as safety and scheduling often dictate that a contractor have some say in how its subcontractors’ employees behave and have some oversight in their terms and conditions of employment.

The legislative process now moves to the US Senate where a vote is expected soon that could block the NLRB rule. AGC supports the CRA legislative efforts to reign in the NLRB and is separately challenging the rule with co-plaintiffs in a lawsuit in federal district court in Texas. In the lawsuit, AGC is arguing the NLRB exceeded authority under the National Labor Relations Act and acted arbitrarily and capriciously in violation of the Administrative Procedures Act.

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