The National Labor Relations Board’s proposed rule would call companies “collective employers” that have indirect control over employment terms such as rosters, hiring and firing, and supervision.
Collective bargaining has been one of the most contentious labor issues for many U.S. companies since the Obama administration, when the NLRB adopted a similar standard that said trade unions were unworkable and restricted ownership.
Under the rule passed during the Trump administration, companies must have “direct and immediate” control over contract and franchise employees to be considered joint employers. Tuesday’s proposal would repeal the 2020 rule favored by business groups.
The new proposal will have far-reaching implications for industries such as manufacturing and construction that rely heavily on staffing agencies and contractors for their workforces, and McDonald’s Corp. For proprietary companies like Their owners day workplace problems.
The NLRB will formally announce the plan on Wednesday, with 60 days for public comment. The final rule will be passed next year.
NLRB Chairwoman Lauren McFerran, a Democrat, said in a statement that the proposed rule is necessary to protect workers’ rights because labor relations are increasingly complex.
A company that becomes a joint employer will be forced to pay more attention to defining and implementing workplace policies, and may need to negotiate with unions.
If passed, the rule would significantly limit the freedom of many small business owners, Elizabeth Mildow said.
“This decision would take away from the employment decisions of small independent owners and leave those decisions in the hands of large corporations,” Mildo said.
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