NLRB Expands Joint-Employer Standard in Dangerous new Precedent

The National Labor Relations Board (NLRB) issued its final rule expanding the joint-employer standard under the National Labor Relations Act. This policy change, effective Dec. 26, 2023, is devastating for the hospitality industry. The new rule upends employment policy, adopting a far-fetched definition of “employer” based on “indirect or potential influence” of an employee and fails to define how “indirect control” will count toward a joint employer relationship. Our partners at the National Restaurant Association and the American Hotel & Lodging Association both issued statements condemning the NLRB's decision and are reviewing opportunities to legally challenge this regulation to restore certainty for America’s hospitality industry.

• NLRB FACT SHEET Joint-Employer Standard Final Rule