As discussed here, on October 26, 2023, the National Labor Relations Board (Board) issued a new Final Rule affecting joint employment under the National Labor Relations Act (NLRA). The new rule rescinds the prior Rule enacted in 2020 and puts forth a new test expanding the circumstances under which an employer is deemed a ‘joint employer.’

As discussed here, the new rule was set to take effect December 26, 2023, but the deadline was pushed to February 26, 2024 after a lawsuit filed by the United States Chamber of Commerce challenged the rule as being unlawful as well as “arbitrary and capricious.” In another legal twist, on February 22, 2024, a judge in the Eastern District Court of Texas issued a stay in the case further extending the rule’s effective date to March 11, 2024.

It is unknown at this time whether this ruling will be further challenged.

Employers should continue to keep in mind that the NLRA joint-employer rule is not the same rule applied by the U.S. Department of Labor for purposes of the Federal Labor Standards Act.