How ‘joint employer’ ruling impacts IT outsourcing customers
The National Labor Relations Board (NLRB) ruling in late August that companies using workers employed by a business, such as staffing agency or service providers, may now, in certain circumstances, be mutually responsible for any labor violations of that external partner.
Previously, the NLRB’s standard for joint employment required that a company have direct control over an individual’s working conditions. However, citing the steady increase of third-party staffing and sub-contracting arrangements in recent years, the board issued a new test stating that a company is a joint employer if it exercises “indirect control over working conditions or if it reserves the authority to do so.”
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