The U.S. Court of Appeals for the Fifth Circuit on July 19, 2024, granted the National Labor Relations Boards (NLRB or Board) motion to voluntarily dismiss its appeal of a district courts order to vacate the Boards 2023 joint employer rule. The vacatur was a major victory for 窪蹋勛圖厙 and its co-plaintiffs that initiated the lawsuit challenging the Boards regulatory effort to broaden the standard for determining when an employer may be deemed a joint employer of another companys employees.
The dismissal renders the district courts ruling final and leaves the prior Boards more reasonable 2020 rule in effect. The 2020 rule allows a finding of joint-employer status under the National Labor Relations Act only when an employer actually exercises substantial direct and immediate control over essential terms and conditions of employment of the other companys employees.
窪蹋勛圖厙 is pleased that the NLRB withdrew its appeal, preventing superfluous expenditure of resources on further litigation over the unlawful 2023 rule. However, 窪蹋勛圖厙 expects the battle to continue, as the present development signals the Boards intent to return to case adjudication as the mode of establishing a new standard for joint-employer status. 窪蹋勛圖厙 will continue to closely monitor and promptly report on developments in this area. To support 窪蹋勛圖厙's litigation efforts, please consider making a corporate donation to our .
For more information, contact Denise Gold, Vice President, Corporate & Labor Legal Affairs, at denise.gold@agc.org or (703) 837-5326.