Status
On March 8, in a victory for ABC, a federal judge in the U.S. District Court for the Eastern District of Texas vacated the 2023 National Labor Relations Board’s joint employer rule and the rescission of the preexisting ABC-supported 2020 rule. This means the 2020 NLRB final rule remains in effect, which provides clear criteria for companies to apply when determining joint-employer status under the National Labor Relations Act.
ABC released the following statement about the decision:
“We are pleased the court has blocked the NLRB’s radical and overbroad joint employer standard, which would have disrupted long-established, efficient operational processes that are followed by construction service providers who work together to build America,” said Ben Brubeck, ABC vice president of regulatory, labor and state affairs.
“Under the 2023 final rule, contractors would be vulnerable to increased liability and risk, making them less likely to hire subcontractors, most of which are small businesses. The rule clearly would have had a harmful effect on a significant segment of the construction industry: small businesses.
“By reinstating the 2020 final rule, contractors will be better able to work and coordinate with multiple employers without fear of being unexpectedly and unfairly found to be joint employers.”
On Nov. 9, 2023, ABC joined the U.S. Chamber of Commerce and a coalition of business groups in filing a lawsuit challenging the NLRB’s final rule for violating the NLRA and for acting arbitrarily and capriciously in violation of the Administrative Procedure Act. The 2023 final rule rescinded the ABC-supported 2020 NLRB joint employer final rule.
Desired Outcome
ABC supports the CRA to overturn the NLRB’s joint employer final rule.
ABC also supports the Save Local Business Act (H.R. 2826/S. 1261) introduced on April 26 by Sen. Roger Marshall, R-Kan., and Rep. James Comer, R-Ky., to make clear that an employer may be considered a joint employer in relation to an employee only if the employer directly, actually and immediately exercises significant control over the essential terms and conditions of employment. ABC joined a coalition in support of the legislation.