A federal rule that takes effect on Dec. 26 creates new standards for determining when two companies should be considered “joint employers” under the National Labor Relations Act, which could make it easier for millions of franchise employees and others to unionize.
The National Labor Relations Board rule, which classifies joint employers as those that have the authority to control at least one condition of employment, could increase the number of large companies that must take part in labor negotiations alongside franchise owners and independent contractors. For example, Amazon might have to bargain with drivers employed by independent contractors, and Burger King might have to bargain with workers in its franchises.
“It’s trying to take in the realities of today’s workforce, when many employers subcontract out work and say, ‘Oh, we’re not the employer,’ ” said Cathy Creighton, the director of the Buffalo Co-Lab at Cornell University’s School of Industrial and Labor Relations.
The new rule amends a 2020 rule that the labor board said made it too easy for joint employers to refuse to bargain with workers. It faces significant opposition from businesses. The American Hotel and Lodging Association has sued to block it.
Associated Press, Nov. 13