Joint Employer Standard Struck Down as Independent Contractor Rule Takes Effect

A federal judge has struck down the Biden Administration's new, broader “joint employer” definition as the new standard for independent contractors takes effect.

A federal judge has struck down the National Labor Relations Board’s (NLRB’s) rulemaking that broadened the legal test for determining how a “joint employer” is defined under the law. The Court determined that the Biden Administration’s final regulation, released late last year, is unlawfully broad.

Following the Court’s decision, the current standard set by the NLRB in 2020 will remain in place. The current standard considers just the direct and immediate control one company exerts over the employment of workers directly employed by another firm.

Meanwhile, the U.S. Department of Labor’s (DOL’s) final rule revising the standard for determining whether a worker is an employee or independent contractor under the Fair Labor Standards Act (FLSA) took effect on March 11.

Though the new standard is now technically in effect, it already faces multiple legal challenges that could prevent its implementation. NATSO opposes the Biden Administration’s revised independent contractor standard and will continue to monitor the rulemaking as the litigation progresses.

Subscribe to Updates

NATSO provides a breadth of information created to strengthen travel plazas’ ability to meet the needs of the travelling public in an age of disruption. This includes knowledge filled blog posts, articles and publications. If you would like to receive a digest of blog post and articles directly in your inbox, please provide your name, email and the frequency of the updates you want to receive the email digest.