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Fri Dec 28, 2018, 01:00 PM

U.S. appeals court nixes labor agency's Obama-era 'joint employment' test

Source: Reuters

(Reuters) - A federal appeals court on Friday ruled that a U.S. labor agency’s Obama-era standard making it easier to hold companies liable for illegal labor practices by their contractors and franchisees was too broad, giving business groups a victory.

The U.S. Court of Appeals for the D.C. Circuit, in a 2-1 ruling, said that a 2015 National Labor Relations Board decision did not properly define the kind of “indirect control” over working conditions that the agency said could make companies so-called joint employers of contract or franchise workers.

Joint employers are required to bargain with contract workers’ unions and can be held liable for violating those workers’ rights under federal labor law. Overturning the 2015 standard has been a top priority of business groups, including the U.S. Chamber of Commerce, the nation’s largest business lobby, which said the Obama-era ruling threatened to upend supply chains and the franchise model.

The five-member NLRB, whose current majority was appointed by President Donald Trump, proposed a rule in September that would restore an earlier standard for determining when a company is a joint employer. The board has said it expects to adopt a final rule by June.


Daniel Wiessner

Read more: https://www.reuters.com/article/us-usa-labor/u-s-appeals-court-nixes-labor-agencys-obama-era-joint-employment-test-idUSKCN1OR1C5

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Reply U.S. appeals court nixes labor agency's Obama-era 'joint employment' test (Original post)
Eugene Dec 28 OP
sandensea Dec 28 #1
onenote Dec 28 #2

Response to Eugene (Original post)

Fri Dec 28, 2018, 02:43 PM

1. The best gummint money can buy

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Response to sandensea (Reply #1)

Fri Dec 28, 2018, 04:33 PM

2. The majority was two Obama appointed judges and the dissent was by a Bush appointee.

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