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Log In / Register | May 24, 2018

Department of Labor Rescinds Joint-Employer Guidance

Franchisors were elated to hear yesterday that the federal Department of Labor had rescinded its Obama-era joint-employer interpretation. But there is a way to go before 'zors can feel that they're out of the woods on joint-employer liability.

Despite the DOL’s reversal, the Obama-era standard can still be applied to businesses through the National Labor Relations Board (“NLRB”), an independent agency that serves as the government’s main labor law enforcer. The NLRB considers a company jointly liable for its contractors’ compliance with the National Labor Relations Act if they have “indirect” control over the terms and conditions of employment or have “reserved authority to do so.” The NLRB has not rescinded its interpretation. President Trump has yet to pick nominees for the five-member board’s two open seats, which will likely affect the NLRB’s interpretation of the joint employer doctrine and many other NLRB rules, interpretations, and guidance. [Bold emphasis added by Blue MauMau] — James R. Hays, Jason P. Brown, Sheppard Mullin Richter & Hampton LLP/The National Law Review

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Zarco: NLRB Ruling Is Good for Franchisees May 2, 2016

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