March 6, 2018 | by    

NLRB Overturns December Decision Vacating Obama-Era Joint Employer Standard

On Monday, February 27, the National Labor Relations Board (NLRB) vacated its December 2017 decision in Hy-Brand Industrial Contractors, which had overturned the joint employment standard set by the Obama administration. This order puts previous Obama-era decision in Browning-Ferris Industries back in place.

As Connecting the Dots explained in December, Browning Ferris drastically expanded the joint employer standard under the National Labor Relations Act by ruling that a business could be classified a joint employer even if its relationship to the employees in question were indirect. The Metals Service Center Institute’s (MSCI) partners at the Coalition for a Democratic Workplace (CDW) are examining the NLRB’s position with respect to vacating the Hy-Brand decision.

The coalition will continue to fight against the policy established by Browning-Ferris Industries and to urge Congress to provide lasting certainty for businesses by passing the Save Local Business Act, which would clarify what constitutes a joint employer under federal labor law. The U.S. House already passed this bill. It is not clear whether and when the U.S. Senate will consider it.