The National Labor Relations Board (NLRB) released a final rule on October 26 that will significantly broaden the standard for determining whether separate entities are “joint employers” of particular employees within the meaning of the National Labor Relations Act.

This standard is important, because if an organization is considered to share or codetermine certain terms and conditions of employment for another organization’s employees, both organizations may be required to bargain with a union representing jointly employed workers, and each organization may be liable for unfair labor practices committed by the other.

In response to the NLRB’s proposed rule on these issues, LeadingAge on December 7, 2022, submitted comments expressing concern that the expansive breadth of the proposed standard would unreasonably impose risks on organizations of expanded collective bargaining obligations and of liability for unfair labor practices committed by those organizations’ business partners with respect to their own employees. The NLRB did not significantly change its proposal.

The final rule will take effect on December 26, 2023, and LeadingAge will provide additional information in the weeks ahead.