Provided by Florida Chamber of Commerce

Proposed federal regulations are causing uncertainty for Florida small businesses as federal agencies seek to redefine the employer-employee relationship. Below is an example that small businesses should determine if they will be impacted and take appropriate action. If you would like assistance in responding to the proposed rules or offer input into the Florida Chamber’s comments, please contact Chad Kunde at ckunde@flchamber.com.

Proposed NLRB Change to Joint-Employer Standard

The National Labor Relations Board (NLRB) has issued a notice of proposed rulemaking that would significantly alter the standard of who is considered a “joint employer” under the National Labor Relations Act. This proposal would reverse a rule on the same topic promulgated just over 2.5 years ago and covers numerous commonplace business relationships that traditionally have not been considered joint employment, a legal situation in which two or more employers control the work or working conditions of the same employees.   Currently, businesses are considered “joint employers” if the businesses exercise direct and immediate control over employment practices and conditions of employment. The new proposed rule does not require a company exercise direct control to be considered a “joint employer,” but merely share or co-determine working conditions and conditions of employment. The Florida Chamber is aware of the potential burden the NLRB proposed rule could have on businesses and is seeking your input before the deadline to comment on December 7th, 2022. Please provide your feedback by completing the survey below.

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The proposed rulemaking could be consequential because employers can be held liable for each other’s unfair labor practices or be required to engage in the collective bargaining process. Under this expanded definition, businesses would no longer have to exercise control over another business’ labor or employment practice to be held liable. The NLRB “joint employer” standard has flip-flopped continuously over the last seven years which has created uncertainty for businesses that do share a working relationship with other businesses. This proposed change will replace the current legal standard with a vastly broader one, sweeping many more business relationships under its coverage.