On October 26, 2023, the National Labor Relations Board (the “Board”) issued its most recent standard (the “2023 Rule”) for determining when two (or more) entities are considered “joint employers” under the National Labor Relations Act. The 2023 Rule supplants the Board’s previous joint employer rule issued in 2020 (the “2020 Rule”) and expands the landscape where joint employer status can be established. The 2023 Rule goes into effect on February 26, 2024.
Joint employment is a concept whereby an entity, other than an employee’s actual employer, can be held liable as an employer because it exercises a certain degree of control over another entity’s formal employee. A finding of joint employer status is significant as it can create liability under, inter alia, discrimination statutes and wage/hour laws, where it would otherwise not exist given the absence of a formal employer/employee relationship.
