NLRB Delays Joint Employer Rule Effective Date to February
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On Nov. 16, 2023, the National Labor Relations Board (NLRB) announced it would push the effective date of the new joint-employer rule to Feb. 26, 2024. The final rule was published in the Federal Register on Oct. 27, 2023, and was initially set to become effective on Dec. 26, 2023. However, the agency has delayed the effective date by two months to facilitate the resolution of legal challenges regarding the new rule. Notice of the extension will be published in the Federal Register.
The New Joint-employer Standard
The 2023 joint-employer standard establishes new criteria for determining joint-employer status as applied to labor issues related to the National Labor Relations Act. It will rescind the existing 2020 joint-employer standard and replace it with a more inclusive law, making it easier for employers to be classified as joint employers. Notable changes to the joint-employer standard include the following:
- Clarification of the definition of “essential terms and conditions of employment”
- Identification of the types of control that are necessary to establish joint-employer status and the types that are irrelevant to the joint-employer inquiry
- Description of the bargaining obligations of joint employers
Legal Challenges
On Nov. 9, 2023, a coalition of businesses sued the NLRB in federal district court, alleging the new joint-employer rule is unlawful, overly broad and contradictory to the common-law definition that limits joint employment to relationships of actual and substantial control of working conditions. The lawsuit further alleges that the NLRB is acting arbitrarily and capriciously in violation of the Administrative Procedure Act. The group of businesses suing the NLRB includes the U.S. Chamber of Commerce, the National Retail Federation, the International Franchise Association, the American Hotel and Lodging Association, Associated Builders and Contractors, Associated General Contractors of America, and the National Association of Convenience Stores. Additionally, Senators Bill Cassidy and Joe Manchin announced they would introduce a Congressional Review Act resolution to overturn the rule.
Conclusion
The new joint-employer standard will only be applied to cases filed after the rule becomes effective on Feb. 26, 2024. Employers can prepare for the new rule by familiarizing themselves with the new standard and determining whether a more inclusive joint-employer standard will reclassify them as joint employers by the amended effective date.
We’ll keep you apprised of any notable updates.
- Published in Blog
LEGAL UPDATE – House Passes Federal Marijuana Decriminalization Bill (MORE Act)
This article is from RISQ Consulting’s Zywave client portal, a resource available to all RISQ Consulting clients. Please contact your Benefits Consultant or Account Executive for more information or for help setting up your own login.
On April 1, 2022, the U.S. House of Representatives voted 220-204 in favor of decriminalizing marijuana at the federal level.
Although the Marijuana Opportunity Reinvestment and Expungement (MORE) Act is not expected to become law due to lack of support in the Senate, the House vote is significant because it is the second time either chamber of Congress has acted to remove federal prohibitions against marijuana use.
The House previously passed a similar version of the bill on Dec. 4, 2020. While that bill was never brought up in the Senate, the new MORE Act is generally considered more likely to at least reach a vote in that chamber.
The MORE Act
The MORE Act would eliminate all federal criminal penalties related to marijuana by removing it from the federal Controlled Substances Act. It would also expunge virtually all federal marijuana convictions back to 1971, create grant programs, and impose a 5% sales tax on all marijuana products.
Employer Impact
An amendment included in the new bill would require the federal government to conduct a study on how state recreational marijuana laws affect various aspects of the workplace, such as workers’ compensation claims and sick days used.
The MORE Act also includes protections against being denied any federal benefit based on marijuana use or convictions. Otherwise, it does not address marijuana in the context of private employment. Therefore, employers should watch for more information and become familiar with and follow all applicable state and local laws relating to marijuana and employment.
- Published in Blog