Judge blocks NLRB Joint Employer rule

On Friday evening, a U.S. district judge of the eastern district of Texas vacated the National Labor Relations Board (NLRB) rule on determining the standard for joint employer status. The rule was scheduled to take effect March 11.

Had the rule proceeded as written, it would have rescinded the narrower 2020 joint employer rule and positioned more employers as having a joint employer relationship, thus increasing more liability and risks of potential workplace violations.

The rule was originally scheduled to take effect December 26, and was bumped back to February 26. On February 22, the Texas district court judge pushed back the effective date of the joint employer rule to March 11 due to ongoing litigation. The NLRB expressed disappointment as the rule is dead in the water, currently.

“The District Court’s decision to vacate the Board’s rule is a disappointing setback, but is not the last word on our efforts to return our joint-employer standard to the common law principles that have been endorsed by other courts," said Chairman Lauren McFerran. "The Agency is reviewing the decision and actively considering next steps in this case.”

Key to remember: Had the NLRB rule taken effect today, more employers would have been liable for workplace violations.