In a Dec. 19, 2017 Newsline article, ABC reported that the Republican majority members of the National Labor Relations Board (NLRB) overruled the board’s 2015 decision in Browning-Ferris Industries and returned to the previous joint employer standard that was in place for more than 30 years. The reversal was a victory for employers nationwide. 

However, on Feb. 26, the NLRB moved to vacate a recent joint employer decision (Hy-Brand Industrial Contractors Ltd.) and as a result, the board’s December action on the Browning-Ferris Industries is of no force or effect. Thus, the controversial Obama-era joint employer standard is back in effect, though it is unclear how long that will be the case once new Republican members are appointed to the board. 

The 2015 decision expanded joint employer liability under the National Labor Relations Act (NLRA) to situations where a company has “indirect” control and “unexercised potential” control over the essential terms and conditions of employment of another company’s employees. The Obama-era decision imposes unnecessary barriers to and burdens on contractor and subcontractor relationships throughout the construction industry.  

ABC will continue to support the Save Local Business Act (H.R. 3441), which will restore the joint employer standard that had been in place for over 30 years, bringing stability back into the economy for contractors and subcontractors across the country.

To learn more about recent activity at the NLRB, register for ABC National’s member-only webinar on March 7, The Latest on the NLRB: Major Changes and What’s Ahead in 2018.