In a recent ruling the NLRB substantially changed its standard for determining the status of “joint-employers.” Previously the NLRB recognized that employers were only responsible for employees under their direct control. The new decision came in a case involving Browning-Ferris Industries of California.
As stated on the NLRB’s website “In the decision, the Board applies long-established principles to find that two or more entities are joint employers of a single workforce if (1) they are both employers within the meaning of the common law; and (2) they share or codetermine those matters governing the essential terms and conditions of employment. In evaluating whether an employer possesses sufficient control over employees to qualify as a joint employer, the Board will – among other factors — consider whether an employer has exercised control over terms and conditions of employment indirectly through an intermediary, or whether it has reserved the authority to do so. ”
The result is that employers may now be held responsible for actions of the “Temp” companies who provide them with workers. This means companies can be liable for actions they do not control. Many construction companies use “Temp” services to supplement their workforce and avoid the costs related to hiring employees. Given this change in the law, companies should consult with their “Temp” services, review their contracts with those services and consider the additional risks (fines, wage lawsuits, NLRB complaints, etc.).
For further information about this issue and other business, employment and construction matters please contact our attorneys (Pat Durazzo, Neal Eckel or Eric Hawkins) at 520-792-0448 or firstname.lastname@example.org.
Durazzo, Eckel & Hawkins provides comprehensive legal services for construction and business clients, including representation before the NLRB, the courts and in other administrative matters. Our offices are in Tucson, Arizona but we handle cases throughout Southern Arizona, Tucson and Phoenix.