A ruling last week by the National Labor Relations Board expanded the definition of a “joint employer,” a move that paves the way for contract workers and other temporary employees to more easily unionize.
Many business groups, including ACG, are concerned the ruling will have a negative impact on businesses—including middle market companies and small businesses—and signals broad overreach by the U.S. labor regulator.
The NLRB’s 3-2 decision is expected to impact a host of industries, including fast food, construction and others that rely on franchised and contract workers. Prior to the ruling, companies employing these types of workers were not directly impacted by many of the labor disputes involving these workers.
“Before the ruling, companies had to have exercised ‘direct operational and supervisory control’ over employees to be considered joint employers,” the New York Times reported.
The decision “is the latest attempt by the labor department to tackle the core question of who counts as an employee in a modern economy that is increasingly reliant on shift work, contract workers and other temporary employees,” The Wall Street Journal said. The NLRB ruling stemmed from a single case, Browning-Ferris, involving sanitation workers in California.
ACG Public Policy Vice President Amber Landis noted “the decision is disappointing,” and that “ACG and others involved in the Coalition to Save Local Businesses are ready to push back” against it.
Stay tuned for more information from ACG on this important issue.