The start date for the National Labor Relations Board’s (NLRB) new joint employer rule has been postponed once again, this time to March 11, marking the second delay for its implementation. Initially set to commence on December 26, 2023, the rule’s effective date was first pushed to February 26, before the latest extension was announced.
This upcoming regulation aims to clarify the circumstances under which two businesses can be considered joint employers of the same employees. Specifically, it sets a criterion that two entities are recognized as joint employers if they share or co-determine crucial aspects of an employee’s terms of employment.
The reason behind this most recent postponement appears to be to allow more time to address ongoing legal disputes surrounding the rule. The NLRB mentioned that the initial delay was intended to “facilitate resolution of legal challenges with respect to the rule.” One of the main challengers, the U.S. Chamber of Commerce, has formally requested to invalidate the rule. The court, having held a hearing on this matter on February 13, has indicated that it will be delivering its decision in the near future.
The ongoing legal battles and the subsequent delays underscore the contentious nature of the joint employer rule, which has significant implications for the relationship between employers and their workforce, especially in cases involving multiple business entities.
