NLRB Withdraws Appeal in Joint Employer Case
WASHINGTON (July 19, 2024) — Today, the National Labor Relations Board (NLRB) moved to withdraw its appeal of the U.S. District Court for the Eastern District of Texas’ decision to vacate the 2023 Joint Employer final rule, which means the court’s favorable decision will become final. The Board had appealed the decision on May 7.
On March 8, the district court vacated the 2023 final rule. Under the court’s decision, the Associated Builders and Contractors (ABC)-supported 2020 Joint Employer Final Rule, which provides clear criteria for companies to apply when determining their joint employer status, remains in effect today.
“We are pleased the Board decided to withdraw its appeal of the court’s decision and that the court’s ruling to block the NLRB’s radical and overbroad joint employer standard is now final,” said Ben Brubeck, ABC vice president of regulatory, labor and state affairs. “The 2023 final rule would have disrupted long-established, efficient operational processes that are followed by construction service providers who work together to build America. And it clearly would have had a harmful effect on a significant segment of the construction industry: small businesses.”
“Because the ABC-supported 2020 final rule remains in effect, contractors will be better able to work and coordinate with multiple employers without fear of being unexpectedly and unfairly found to be joint employers,” said Brubeck.
On Nov. 9, 2023, ABC joined the U.S. Chamber of Commerce and a coalition of business groups in filing a lawsuit challenging the NLRB’s final rule for violating the National Labor Relations Act and for acting arbitrarily and capriciously in violation of the Administrative Procedure Act.
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