By John D. Prendergast with Jackson Lewis P.C.
The National Labor Relations Board has announced that the effective date of its new “joint employer” final rule is postponed by two months. The announcement coincides with several legal challenges to the rule, previously scheduled to become effective on Dec. 26, 2023. The extended effective date is Feb. 26, 2024.
The final rule has significant implications for employers. Among other things, it would broaden the joint-employer standard to include anyone controlling just one of seven “essential terms and conditions of employment.”
According to the Board’s website, the Board extended the date to “facilitate resolution of legal challenges concerning the rule.” Indeed, there have been several challenges to the final rule since it was announced. For example, on Nov. 9, the U.S. Chamber of Commerce and a coalition of business groups filed a lawsuit challenging the rule as statutorily unauthorized, arbitrary, and capricious. The final rule has also encountered political challenges, with lawmakers introducing a resolution in the Senate to overturn the rule.
Given the number of challenges to the final rule and their complexity, it remains uncertain whether the effective date will be extended beyond February 2024. Prudent employers, however, should assume the rule will go into effect in February and prepare accordingly by carefully reviewing any commercial agreements with other companies to determine whether a joint-employer relationship may be established.
Please contact a Jackson Lewis attorney with questions on the Final Rule and how it may impact your organization.
JACKSON LEWIS P.C. (“FIRM”) PROVIDES THE INFORMATION IN THIS POST FOR GENERAL INFORMATIONAL PURPOSES ONLY. THIS POST SHOULD NOT BE RELIED UPON OR REGARDED AS LEGAL ADVICE. NO ONE ACCESSING OR REVIEWING THIS POST, WHETHER OR NOT A CURRENT CLIENT OF THE FIRM, SHOULD ACT OR REFRAIN FROM ACTING BASED ON SUCH CONTENT OR INFORMATION, WITHOUT FIRST CONSULTING WITH AND ENGAGING A QUALIFIED, LICENSED ATTORNEY, AUTHORIZED TO PRACTICE LAW IN SUCH PERSON’S PARTICULAR STATE, CONCERNING THE PARTICULAR FACTS AND CIRCUMSTANCES OF THE MATTER AT ISSUE. THE POST MAY NOT REFLECT CURRENT LEGAL DEVELOPMENTS, OR LAWS OR RULES THAT MAY APPLY IN PARTICULAR JURISDICTIONS. THE FIRM AND ITS LAWYERS EXPRESSLY DISCLAIM ALL LIABILITY IN CONNECTION WITH ACTIONS TAKEN OR NOT TAKEN BASED ON ANY OR ALL OF THE CONTENTS OR INFORMATION ACCESSIBLE THROUGH THIS SITE. ANY INFORMATION ABOUT PRIOR RESULTS ATTAINED BY THE FIRM OR ITS LAWYERS IS NOT A GUARANTEE OR WARRANTY THAT A SIMILAR OUTCOME WILL BE ACHIEVED.
THE FIRM IS NOT RESPONSIBLE FOR THE CONTENT, OPERATION, LINKS, TRANSMISSIONS, OR ANY INFORMATION PROVIDED ON ANY OTHER PART OF ASURE SOFTWARE, INC.’S WEBSITE OR ANY THIRD-PARTY WEBSITE THAT MAY BE ACCESSED BY A LINK FROM THIS WEBSITE.
NOTHING PROVIDED BY THE FIRM IS INTENDED TO FORM AND WILL NOT CREATE AN ATTORNEY-CLIENT RELATIONSHIP.
THIS POST MAY BE CONSIDERED ATTORNEY ADVERTISING UNDER THE RULES OF SOME STATES. THE HIRING OF AN ATTORNEY IS AN IMPORTANT DECISION THAT SHOULD NOT BE BASED SOLELY UPON ADVERTISEMENTS.
STATEMENT IN COMPLIANCE WITH TEXAS RULES OF PROFESSIONAL CONDUCT: UNLESS OTHERWISE INDICATED IN INDIVIDUAL ATTORNEY BIOGRAPHIES, LAWYERS RESIDENT IN THE FIRM’S VARIOUS OFFICES ARE NOT CERTIFIED BY THE TEXAS BOARD OF LEGAL SPECIALIZATION.