The National Labor Relations Board (NLRB) has dropped its appeal of a Texas federal judge’s order striking down its new, expansive joint employer rule. As readers may recall, late last year the NLRB issued a rule broadening the definition of joint employer, which would have significantly increased the number of entities that may be deemed joint employers and thus share responsibility for complying with the National Labor Relations Act.
As a result of the ensuing actions, the standard will now revert back to the Trump administration’s 2020 rule, under which an entity must have direct and immediate control over a group of workers to be considered a joint employer rather than having simply reserved the right to exercise control.
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