The National Labor Relations Board (“NLRB”) has proposed a joint employer rule change that would upend a controversial Obama-era decision that drastically expanded who can be subject to liability for unfair labor practices and deemed an essential party for collective bargaining. The NLRB’s proposed rule reinstates the “traditional test,” whereby an employer may be considered a joint employer of another employer’s employees only if it possesses and actually exercises substantial direct and immediate control over the employees’ essential terms and conditions of employment.
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