In a flurry of high-profile decisions issued on the eve of NLRB Chairman Phillip Miscimarra’s term’s expiration, the NLRB has announced employer-friendly standards reversing recently adopted analyses and restoring the historical analyses in perhaps the two most watched (and criticized) categories of employer unfair labor practice (ULP) charges: (1) evaluating work rules for impact on protected concerted activity (formerly the Lutheran Heritage analysis); and (2) joint employer liability (formerly the Browning-Ferris analysis).

Impact on Employers:

As a result of the “new” work rule analysis, employers will be less likely to face scrutiny of employee handbook provisions. Employers now have broader discretion to implement and enforce handbook provisions relating to civility in the workplace and workplace safety (i.e., no cell phone/camera policies, social media). Employers who have dramatically trimmed employee conduct policies have some freedom to reinstate more usable and effective rules, but should note that this area of law is almost certain to fluctuate based on the presidential administration in power.

With the reversal of the joint employer analysis, employers will have less labor risk (bargaining obligations and strikes) when engaging third parties like staffing companies, temporary workers, or co-located workers. Critically, the prospect of becoming bound to a bargaining obligation with  another entity’s employees will be substantially less likely. Avoiding joint employer liability will focus more limiting actual control and direction of non-employees and less on the contractual arrangements with other entities supplying those employees. While this change is unlikely to dramatically change the scope of outsourcing, employers can have more certainty of the scope of potential ramifications and liability in using third party workers.Continue Reading Signaling Major Change, NLRB Yanks ‘Joint Employer’ Standard And Adopts A More Pro-Employer Stance On Workplace Policies

After the NLRB’s aggressive pro-union stance during President Obama’s term, the Board is poised for change under President Trump. On January 23, 2017, President Trump named Philip A. Miscimarra—the sole Republican of three current Board Members—Acting Chairman of the Board. Further, as the Board traditionally has five Members, President Trump will nominate two Members to fill the current vacancies. Assuming President Trump nominates two Republicans as expected, the Board will have a Republican majority for the first time in over nine years. Although it is unclear how far the Board will shift from its recent pro-union stance, three key decisions could be overturned by a Republican-controlled Board.
Continue Reading Is a More Business-Friendly NLRB Coming? What it Could Mean for Employers

On August 1, 2016, the U.S. Department of Labor and Doctors Associates Inc. (Subway Restaurants) announced a voluntary agreement formalizing their ongoing collaboration.  This agreement is a first of its kind and seeks to ensure that franchise owners have the tools necessary to comply with wage and hour laws.  Since 2012, Subway has made available a platform for the DOL to provide training and resources to franchisees.  Despite the DOL’s efforts, other companies have reportedly been reluctant to enter into similar agreements due to fears that other government agencies will use such an agreement as evidence of a joint employer relationship.  Interestingly, Subway has been collaborating with the DOL for over three years and although this collaboration has been very much in the public eye, no agency has indicated that such a relationship would make them a joint employer.  The DOL hopes the fact that Subway, the world’s largest franchisor, entered into the compliance agreement will encourage other companies to follow suit.  Given the various government agencies’ joint employer efforts, all companies, whether franchisors or not, should analyze their own specific circumstances before entering into a similar agreement.
Continue Reading Does Subway’s Compliance Agreement with the DOL Really Raise Joint Employer Concerns?

The Department of Labor’s Wage and Hour Division recently released Administrator’s Interpretation No. 2016-1, examining joint employment relationships under the Fair Labor Standards Act and the Migrant and Seasonal Agricultural Worker Protection Act.  This comes shortly after the National Labor Relations Board issued its well-publicized decision in Browning-Ferris Industries that dramatically broadened the “joint employer” concept under the National Labor Relations Act.  So where does the law now stand under the FLSA?
Continue Reading DOL Becomes Latest Agency to Target Joint Employment