On the eighth of March, 2024, a Texas federal judge struck down a rule of the United States National Labor Relations Board. In a momentous blow to the United States National Labor Relations Board, a Texas federal judge has blocked a contentious rule that would have allowed contract and franchise workers to be able to work for different companies at once. They would also be able to bargain with and be represented by worker unions.
Issued back in October 2023, the law took effect on the 12th of March 2024. The next section highlights how this came to be and why the law was struck down in court.
How the Joint Employer’s Rule Was Struck Down
The judge in question, U.S. District Judge J. Campbell Barker, agreed to the notion of the challengers on the joint employers’ rule that the rule covered many loopholes and even violated federal labor law. He maintained that it was invalid because it would empower the companies, the employers of franchise or contract workers, even when the companies did not have any significant control over the workers’ working conditions.
The judge wrote that the rule will treat every worker that is hired for labor as a joint employer. This is because almost every contract for third-party labor offers terms that affect key terms and conditions of employment directly or indirectly.
“That the decision of the district court is to vacate the Board’s rule is quite disappointing. However, we will not give up on our efforts to revert to the set-down standards determined by the common legal principles other courts have endorsed,” said Lauren McFerran, the current NLRB Chair.
The NLRB Chair also added that the body was considering its next steps in regards to the case. It is expected to appeal the decision to the 5th United States Circuit Court of Appeals based in New Orleans. However, the Chamber of Commerce did not acquiesce to the request for comments.
Who Will Be Affected by This Decision?
Numerous industries, especially those of a construction and manufacturing nature, unsurprisingly depend heavily on contractors and staffing businesses to get workers for their jobs. Franchises such as Burger King, Dunkin’ Donuts, and McDonald’s also depend on these types of workers for their work.
This new rule would make companies “joint employers” of franchise and contract workers, which would mean that they would be able to control their working conditions such as discipline, pay, supervision, and even selecting days to work, directly or indirectly.
However, the rule was made in a good light. The NLRB, along with the unions, has always maintained the stance that the rule is to bring companies down from their high horse, down to where they can be made responsible for the well-documented labor law violations simply because the law favors them in that aspect.
Conclusion
“An abuse of power is never the solution between two opposing sides, as it can be used as a weapon of revenge, which renders the concept of the law useless,” says attorney Jason W. Power. Nevertheless, a solution will need to be found, and the law is the best instrument to get justice, or a form of it that ensures both sides get a fair side.
