Appeals Court Says Obama-Era ‘Joint Employment’ Labor Test Too Broad

Labor News

Reprinted from The Hill by John Bowden on December 28, 2018.

A panel of federal judges on Friday ruled against a 2015 decision from the National Labor Relations Board (NLRB) that made it easier to hold companies responsible for conduct by franchisees and contractors.

The US Court of Appeals for the DC Circuit in a 2-1 ruling found the labor agency did not properly define the type of “indirect control” over working conditions that would make companies joint employers of franchise and contract workers, Reuters reports.

The appeals court said the Obama-era decision was too broad and ordered the agency to tighten its definition of “indirect control” over working conditions.

The ruling is a victory for business groups, including the Chamber of Commerce, that warned the rule would damage franchise business models in the US.  …

The Hill 12/28

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Jeff Burman represents assistant editors on the Guild’s Board of Directors. He can be reached at

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