Transportation Brief: Proposed NLRB Rule on Joint Employer Status

by Kelli M. Block, A. Jack Finklea

January 31, 2023

The National Labor Relations Board recently announced a proposed rule to replace the current rule on joint-employer status under the National Labor Relations Act. Under the current rule, joint employer determinations rest on whether the alleged joint employer has the right to and actually exercises “direct and immediate” control over essential conditions of employment. Under the proposed rule, an entity may be deemed a joint employer if it has the authority to exercise direct or indirect control over essential conditions of employment, regardless of whether it actually exercises control. In the transportation industry, the right to communicate even basic service details and/or monitor the location of freight may cause the NLRB to allege joint employer liability pursuant to the proposed rule. A final version of the rule could come as soon as late February 2023. We are closely monitoring any developments.

Scopelitis’ Transportation Brief® is intended as a report to our clients and friends on developments affecting the transportation industry. The published material does not constitute an exhaustive legal study and should not be regarded or relied upon as individual legal advice or opinion.

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