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NLRB Decision: joint employment relationships between employers; 8/27/2015

Employment Law News Update – NLRB Decision: joint employment relationships between employers, August 27, 2015

Employment Law News:  NLRB’s Decision in Browning-Ferris Industries of California, Inc., Case 32-RC-109684, August 27, 2015

Posted by Patricia M. Olsson, Moffatt Thomas:Patricia Olsson

The NLRB has, in a significant decision, greatly expanded the situation where a joint employment relationship can exist between employers.  Under the new standard, the NLRB may find that two or more employers are joint employers of the same statutory employees if they “share or codetermine those matters governing the essential terms and conditions of employment.”  Significantly, the NLRB will find a joint employment relationship if one of two employers merely possesses the authority to control employee’s terms and conditions of employment.

Applying what the NLRB calls the “restated” joint-employer standard, it found that Browning-Ferris Industries as well as its franchisee, BFI Newby Island Recyclery and FPR-II, LLC, are joint employers.

nlrb logo-1956x1024This decision significantly broadens the potential for a finding of joint employer relationships between franchisors and franchisees, and other such entities.  Additionally, it may impact temporary employees, employed by a temp agency, directed by a temp agency, yet who get their instructions through their supervisor at the temp agency from the entity contracting with the temp agency.

Please see links below for the full decision, as well as articles concerning the same. Check back for updates; and don’t hesitate to contact counsel if this is of concern to your business.

https://www.nlrb.gov/case/32-RC-109684

http://www.forbes.com/fdc/welcome_mjx.shtml

http://www.washingtonpost.com/news/wonkblog/wp/2015/08/27/labor-board-moves-to-make-businesses-accountable-for-their-subcontractors/

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