NLRB Joint Employer Rule is vacated

On March 8, a federal judge in Texas vacated the NLRB's final rule on joint employers, which was due to go into effect on March 11. [Decision]

The new rule would have made it easier for the NLRB to find that two entities were both employers of the same employees.

Apparently the judge thought it would be too easy.

The essential change the new rule would bring is to consider whether an entity has control over key working conditions such as pay, scheduling, discipline and supervision, even if that control is indirect or not exercised.

The judge ruled that the new rule is "contrary to law as to the Rule’s addition of a new 29 C.F.R. § 103.40 and arbitrary and capricious as to the Rule’s removal of the existing 29 C.F.R. § 103.40 (2020)."

Next stop: 5th Circuit.