House of Representatives Passes Bill Narrowing Joint-Employer Definition
On November 7, 2017, the U.S. House of Representatives passed a bill narrowing the definition of “joint employer” issued in 2015 by the National Labor Relations Board in the well-publicized Brown-Ferris Industries matter. In Brown-Ferris , the Board adopted an “indirect or potential control” standard in finding that a waste management company jointly employed workers with a staffing agency. For decades prior to that decision, the Board had applied a “direct control” test to determine joint employment questions. Much of the business community has objected to the new standard, especially franchisors who have argued that their entire business model is threatened by it. A companion Senate bill will likely be introduced in the near future.