What happened?

On July 19, 2024, the National Labor Relations Board (NLRB) filed a voluntary motion to withdraw its appeal of a Texas federal judge’s decision enjoining its joint employer final rule.

What are the details?

On May 7, 2024, the NLRB appealed to the 5th U.S. Circuit Court of Appeals, which has appellate jurisdiction over federal district courts in Texas, the decision from which U.S. District Judge J. Campbell Barker of the Eastern District of Texas vacated the National Labor Relations Board’s joint-employer status and the Board’s rescission of the 2020 joint-employer rule.

The NLRB expressed that it would like the “…opportunity to further consider the issues identified in the district court’s opinion… [and a dismissal would] allow it to consider options for addressing the outstanding joint employer matters before it.”

For now, the NLRB Joint Employer Rule applies except to Texas as an employer and nothing has changed for private employers.

Vensure will continue monitoring any relevant updates; for a good breakdown.

Business Considerations

• As recommended in our previous update, employers should fully understand the implications of the “joint employer” rule and their implications.
• Employers should be proactive in addressing any potential joint-employer issues. This could include implementing clear policies and procedures, providing training to managers and supervisors, and regularly reviewing and updating employment contracts and other relevant documents.

Source References

• NLRB Voluntarily Dismissed
• Biden Vetoes Congress: NLRB Joint Employer Rule Strikes Back (VensureHR)
• Mayday: NLRB Joint Employer Rule Struck Down (VensureHR)
• NLRB withdraws 5th Circuit appeal of joint employer final rule injunction (Industry Dive)
• BREAKING: NLRB Drops Attempt to Revive 2023 Joint-Employer Rule (Proskauer Rose LLP)
• National Labor Relations Board Abandons Joint Employer Rule Appeal (Perkins Coie LLP)
• NLRB Abandons Controversial Joint Employer Rule – But Employers Aren’t Necessarily Out of the Woods (Fisher & Phillips LLP.)

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