NLRB Overturns Joint Employer Standard and Handbook Policy Review Standard

Thursday, January 18, 2018

On December 14, 2017, the National Labor Relations Board (the “Board”) issued two landmark decisions on 2 key issues:

  1. When can two separate and distinct corporate entities be treated as joint-employers for NLRA purposes? The Board re-adopted the common law test which focuses on whether the purported employer has “direct and immediate” control over the employees.
  2. When is a work rule or handbook policy unlawfully overbroad under the NLRA? The Board created a new test that requires a greater degree of balancing between the protections of the Act and the employer’s legitimate business interests.

Employers are now subject to more favorable standards for determining joint employer status and how employer policies are reviewed by the Board. 

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