Federal Judge Blocks U.S. Labor Board Rule On Joint Employers

A federal judge in Texas has struck down a rule by the US National Labor Relations Board (NLRB) that would treat many companies as joint employers of certain contract and franchise workers, requiring them to bargain with unions representing these workers, according to Daniel Wiessner's report for Reuters.

NLRB Chair Lauren McFerran expressed disappointment but indicated that efforts to establish a joint-employer standard aligned with common law principles would continue. I Photo: Geraldshields11 Wikimedia Commons

The rule, issued in October, was deemed too broad and in violation of federal labor law by US District Judge J. Campbell Barker.

The judge sided with challengers, including the US Chamber of Commerce, stating that the rule would treat companies as joint employers even when they lacked meaningful control over working conditions.

NLRB Chair Lauren McFerran expressed disappointment but indicated that efforts to establish a joint-employer standard aligned with common law principles would continue.

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