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Problems with the New Test for Joint-Employer Status

This past summer, the NLRB reversed over 30 years of precedent and adopted a new, more expansive and ambiguous standard for determining joint employer status. The new standard promises to entangle businesses with only tenuous links to another employer's workforce in a morass of collective-bargaining obligations and unfair labor practice liability for workforces over which they exercise no actual control.

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This past summer, the National Labor Relations Board (NLRB) reversed over 30 years of precedent and adopted a new, more expansive and ambiguous standard for determining joint employer status. (See Molly Kaban, Raymond Lynch: The NLRB Joint Employers Ruling, Employment Law Strategist, November 2015, http://bit.ly/1TweWjY.) The new standard promises to entangle businesses with only tenuous links to another employer’s workforce in a morass of collective-bargaining obligations and unfair labor practice liability for workforces over which they exercise no actual control.

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