In a potentially game-changing decision in Browning-Ferris Industries of California, Inc., the National Labor Relations Board (NLRB) cast aside its long-standing joint employer test in favor of a highly union-friendly standard. There is virtually no disputing that this new standard is likely to expand greatly the number of employers subject to collective bargaining and other obligations under the National Labor Relations Act (NLRA).
The NLRB recently redefined Board the word “employer,” concluding that both a company and its subcontractor serve as “joint employers” of a contractor. For any business that subcontracts workers through a third party, this news could mean big changes to the way they operate.
Each can be held liable not only for its own labor violations but also the other entity’s.
Joint employers can also be forced to participate in collective bargaining, regardless of which employer may be considered the primary employer.
As the dissenting Board members emphasized, this ruling is almost certain to have a dramatic impact on all employers. This is especially true for those who use contractors, including from staffing agencies.
EMPLOYER ACTION
- Obtain legal advice on how this new ruling specifically applies to you.
- In the meantime, to be safe, businesses that use contractors should be careful in assigning and requirements. Deadlines and specific outcomes are to be expected, but requiring projects be completed in a certain way during certain work hours can put a business in a position where it is seen as trying to bypass its tax and insurance obligations.
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HOW TRINITY CAN HELP?
As an HR management consulting firm, Trinity does not practice law. However, we have relationships with several law firms that are considered to be outstanding in the practice if Employment Law.
- We can connect you to such a firm.
- For more information, e mail Trinity at info@TrinityHR.net or visit our website at www.TrinityHR.net.