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NLRB delays efficient date of “joint employer” regs till late February: Employment & Labor Insider


The Nationwide Labor Relations Board introduced Thursday that it was delaying the efficient date of its new joint employer rules from the unique December 26 (finish of subsequent month) to February 26, 2024. The Board asserts that the date was prolonged “to facilitate decision of authorized challenges with respect to the rule.” In response to a Board announcement, a discover of the extension will quickly be printed within the Federal Register.

The again story of the Board’s announcement is that the brand new rules promptly generated “pushback” from U.S. Senators and members of the Home of Representatives, in addition to litigation from each organized labor and employer teams. Because the “pushback” ensued, the U.S. Authorities Accountability Workplace reviewed the problem. On November 9, the GAO concluded that the Board violated the Congressional Evaluation Act by promulgating the rules with lower than 60 days’ discover to the Senate.

The Congressional Evaluation Act says {that a} main regulation can not take impact till 60 days after its publication within the Federal Register or receipt by Congress, whichever happens later. The joint employer rules had been printed within the Federal Register on October 27, however the Senate didn’t obtain the rules till October 30, lower than 60 days earlier than the unique efficient date of December 26. Thus, the rules didn’t have the required 60-day delay earlier than their efficient date.

Litigation difficult the joint employer rules is pending in two courts: a federal District Court docket in Texas, and the U.S. Court docket of Appeals for the District of Columbia Circuit. The challenges are based mostly on the substance of the rules and every court docket’s material jurisdiction over the problems raised. Some commentators have stated that the U.S. Supreme Court docket could must resolve a few of these points.

Whether or not the rules take impact on February 26 stays to be seen. A court docket might enjoin the rules from taking impact. Within the meantime, nonetheless, employers ought to know that the present NLRB majority views joint employment expansively. Even with out new rules, the Board is prone to interpret the Nationwide Labor Relations Act to seek out joint employment each time it will probably, in order to have as many employers as attainable answerable for unfair labor practices and obligated to cut price with organized labor.

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