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At Long Last Clarity Concerning the Joint Employer Rule

By Michael J. Frantz on February 25, 2020
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Today the National Labor Relations Board (the “Board”) issued the final version of its Rule rolling back an Obama-era standard that deemed “indirect control” over a contractor or franchisee and/or the reservation of the ability to exert such control as being sufficient to establish joint employment under the National Labor Relations Act.

The Board majority comprised of Trump appointees, Chairman John Ring and members Bill Emanuel and Marvin Kaplan, reinstated the pre-Obama Board test that said that a business would only be deemed a joint employer if it has “substantial direct and immediate control over another company’s workers.”  The new Rule also provides definitions of key terms such as “essential terms and conditions of employment,” as well as what will constitute “direct and immediate control.”  The mere existence of an arm’s length contractual relationship between two businesses will not, in and of itself, create a joint employer relationship.

The Board through Chairman Ring explained that returning to the pre-Obama standard would provide greater clarity for employers, employees and unions in determining true employment relationships.  The determination of joint employer status is critical in determining bargaining obligations and potential liability for unfair labor practices of respective employers.

The Rule was the subject of extensive comments provided by both management and labor, and represents yet another significant reversal by the current Board of Obama Board precedents.

Photo of Michael J. Frantz Michael J. Frantz

For over forty years, Mike’s practice has been devoted to the exclusive representation of employers and their management teams in dealing with the full range of labor and employment issues. He has represented employers in contract negotiations with virtually every major union in…

For over forty years, Mike’s practice has been devoted to the exclusive representation of employers and their management teams in dealing with the full range of labor and employment issues. He has represented employers in contract negotiations with virtually every major union in the U.S. and Canada. Throughout his career he has focused on representing health care and higher education institutions, as well as manufacturing companies and service organizations.

Mike’s practice also includes serving as outside general counsel for a number of his clients. He also serves as a member of the Board of Directors or in other corporate positions for many clients. Nothing gives Mike greater satisfaction as a lawyer than to become known as a trusted advisor to those clients.

Mike currently serves as a member of the firm’s Management Committee that is charged with the responsibility of focusing on the strategic planning and overseeing the day-to-day administration of the firm. He has been recognized at the highest ranking, Band 1, in the area of Labor and Employment by Chambers USA: America’s Guide to Leading Lawyers in Business and designated Best Lawyers’ “2018 Lawyer of the Year” in Labor Law—Management in Cleveland. Mike is continuously named to The Best Lawyers in America and the Ohio Super Lawyers lists.

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  • Posted in:
    Employment & Labor
  • Blog:
    Labor & Employment Law Navigator
  • Organization:
    Frantz Ward LLP
  • Article: View Original Source

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