The National Labor Relations Board (NLRB), (a US government independent agency charged with regulating US labor relations) has just broadened the notion of ‘joint employer’ to extend to all businesses that indirectly exercise control (or have the potential to exercise control) over the “employment terms and conditions” for employees from another entity. Even though the NLRB’s August 27 decision pertained to a contractor, this broader joint employer concept could similarly apply to franchiser/franchisee and subcontracting relationships.
As expected since the NLRB announced a year ago that complaints by employees of McDonald’s franchisees against the McDonald head office were indeed valid (c.f. Article No. 8549) the federal agency has revised its definition of joint employer (that dates back to the Reagan administration). It has extended the notion to all businesses that “Codetermine those matters governing the essential terms and conditions of employment.” In a press communiqué the agency said, “ In evaluating whether an emplo
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