As previously reported, last year the National Labor Relations Board (“NLRB”) released a final rule that would make it easier for employers to be considered a joint employer under the National Labor Relations Act (“NLRA”). This final rule was set to take effect on March 11, 2024, exposing many employers to the burdensome requirements of the NLRA. However, the final rule was vacated by a Texas federal judge on March 8, 2024.

In the decision, the court stated that the legal decisions created by the court system “set[s] the outer limits of a permissible standard for bargaining duties as a joint employer” and that the NLRB acted beyond those boundaries in creating its final rule.

Accordingly, the court vacated the final rule and reinstated the previous joint employer rule, which has been effective since 2020. The reinstated joint employer rule states that an entity is considered a joint employer only if it exercises direct and immediate control over employees’ essential terms and conditions of employment.

This is likely not the last we will hear about this issue so stay tuned for updates as further developments transpire. 



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If you have questions or would like additional information, please contact our Labor & Employment attorneys or the primary EGS attorney with whom you work.