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In Victory for Employers, NLRB Overrules Browning-Ferris Joint Employment Test

On December 14, 2017, the National Labor Relations Board (Board) overruled the standard for joint employment set forth in Browning-Ferris and returned to longstanding, prior principles governing the determination of joint-employer status. With a new majority, the Board held “joint-employer status shall once again require proof that putative joint employer entities have exercised joint control over essential employment terms (rather than merely having “reserved” the right to exercise control); the control must be “direct and immediate” (rather than indirect), and joint-employer status will not result from control that is “limited and routine.”  The Board made clear it intended to align the determination of joint-employer status with the holdings of numerous federal and state courts. Although finding Browning-Ferris well-intentioned, the Board identified five fundamental flaws that warranted reversal. The Board’s decision is being widely viewed as a victory for employers as it removes ambiguities related to control and clarifies the standard for determining joint employment. More ›

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