NLRB Announces Final Joint Employer Rule
1 min read
Mar 9, 2020
Following in the footsteps of the U.S. Department of Labor, the National Labor Relations Board (NLRB) announced its Final Rule regarding joint employment. While the NLRB rarely engages in rulemaking, it deemed it necessary in this instance to provide clarity and predictability regarding joint employment. Effective April 27, 2020, the Final Rule rescinds the current test which went into effect in 2015 and reverts back to the prior analysis. This impacts all employers, particularly in the context of collective bargaining, staffing companies, and franchisers.
Such an analysis looks at whether an employer exercises "substantial direct and immediate control" over one or more essential employment terms and conditions—e.g. hiring, disciplining, wages, benefits, hours, supervisor, or direction—of another business entity's employees. If it does, the entities are joint employers.
The Final Rule defines "substantial direct and immediate control" as "direct and immediate control that has a regular or continuous consequential effect on an essential term or condition of employment of another employer's employees." This threshold is higher, and the NLRB makes it clear that indirect, sporadic, or isolated control is insufficient.
Notably, 17 states have already sued to halt the enforcement of the Department of Labor's Final Rule on joint employment. Despite initial uncertainty, employers should evaluate whether they may be considered to be a joint employer under the new Department of Labor and NLRB Final Rules.
Topics
Related Capabilities
Featured Insights

Consumer Crossroads: Where Financial Services and Litigation Intersect
Oct 19, 2026
Refile, Repeat: Ohio’s Savings Statute Allows for Unlimited Bites of a Time-Barred Claim

Consumer Crossroads: Where Financial Services and Litigation Intersect
Oct 16, 2026
Key Takeaways from the 2026 ACVL Conference for the Auto Finance Industry

Press Release
Oct 16, 2026
Nia Binns Re-Appointed Health and Wellness Committee Co-Chair of the BWLA

In The News
Oct 16, 2026
Jennifer Driscoll Explains How Bond Request Spurred AG Settlement in Paramount Merger

Consumer Crossroads: Where Financial Services and Litigation Intersect
Oct 15, 2026
OCC Releases Debanking Report on Largest Banks; CFPB Announces Follow-On Initiative

In The News
Oct 14, 2026
Hinshaw Attorneys Contribute Rhode Island Chapter in ABA Legal Malpractice Survey

Privacy, Cyber & AI Decoded Alert
Oct 13, 2026
California’s SB 690 Removes Some CIPA Claims, But Privacy and Legal Risks Remain

Press Release
Oct 12, 2026
Two Hinshaw Partners Reappointed to the NYC Bar Association’s Consumer Affairs Committee




