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IMA Human Resources Blog

NRLB Releases Proposed Rulemaking

NAM is an IMA Member

On September 14, 2018, the National Labor Relations Board released a proposed rulemaking that will help manufacturers, workers and our economy by creating a more reliable and workable “joint employer” standard (i.e., the legal test for determining if more than one entity is the individual’s “employer” and thus liable for labor law violations). This represents a major departure from the Obama NLRB’s Browning-Ferris Industries (BFI) decision in 2015, which created immeasurable uncertainty in the manufacturing workplace. The BFI decision brought into question many of the contractor-subcontractor relationships that manufacturers rely on.

Under the Board’s proposal, a joint employer relationship would only be found where employers “possess and actually exercise substantial direct and immediate control” over employees’ conditions of employment like hiring, firing, discipline, and supervision.

This is a positive step for manufacturers. The NAM will be involved throughout the rulemaking process. If you have been affected by the prior BFI standard or have a question about how this proposed rule will affect your workplace, please contact me so that we can work together to offer comment to the NLRB to better ensure this rule fits the needs of your workplace.

For more information on the proposed rule, click here.

For more information on BFI and NAM’s efforts that led to the proposed rule, click here.