As employers may recall, on October 27, 2023, the National Labor Relations Board (“NLRB” or “Board”) published the long-awaited Final Rule (“New Rule”) concerning the joint-employer standard. The New Rule was supposed to take effect on December 26, 2023, but it was delayed more than once due to legal challenges. Most recently, the New Rule’s effective date was delayed to March 11, 2024; however, on March 8, 2024, a federal court judge in Texas vacated the New Rule. This means that for now, employers must continue to follow the joint employer rule issued in 2020. As a reminder, under that rule, a joint-employer relationship exists where a company exercises substantial direct and immediate control over the essential terms and conditions of another company’s employees.
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