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Fed Labor Board Looks to Undo Obama-Era Rule

Citations

InsideSources cited Trey Kovacs on the importance how the National Labor Relations Board new joint employer rulemaking will benefit businesses and workers by aiding to remove politicization than relying on adjudication on labor policies.

The joint-employer standard was previously determined based on whether a company has direct control over the employment policies of another business. The updated standard is instead determined based on indirect control which critics have denounced as a vague overreach of federal powers.

“For American businesses and workers, today’s move by the National Labor Relations Board to address regulatory uncertainty associated with the joint-employer standard is welcome news,” Competitive Enterprise Institute labor policy expert Trey Kovacs told InsideSources. “The NLRB’s announcement of a new joint employer rulemaking is a better, less politicized way than adjudication to deal with labor policies that impact businesses and jobs across the nation.”

The Obama-era NLRB was able to update the standard when ruling in a 2015 case involving Browning-Ferris Industries. The new board majority has struggled to reverse the change with its own ruling because of a possible conflict of interest involving board member William Emanuel.

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