The National
Labor Relations Board's (NLRB) August 2015 ruling that expanded the definition
of a joint employer could be headed to court soon. On January 12, the NLRB
found that Browning-Ferris Industries refused to negotiate with employees who
had sought to form a union - clearing a path for potential legal action. This
type of action was not possible until the NLRB found that a joint employer
refused to negotiate and, as a result, enabled a court to decide if an unfair
labor practice had taken place. Joint employers occur in the multifamily and
other industries when the supervision of employees, like subcontractors,
suppliers, vendors and temporary staff, is shared between two or more
businesses.
Joint employers
are required to negotiate with any union representing the jointly employed
workers and share liability for National Labor Relations Act violations.
According to the NLRB’s August ruling, joint employer liability can be imposed
when an entity has “indirect” control and “unexercised potential” of control
over another entity’s employees. However, for 30 years before this ruling
entities were designated joint employers when both had “direct and immediate”
control over “essential terms and conditions of employment."
