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.
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