The American Staffing Association today released the following statement regarding the U.S. National Labor Relations’ Board’s final rule regarding the standard for determining joint-employer status under the National Labor Relations Act.
“The National Labor Relations Board’s joint employer final rule issued today is unlikely to have a significant impact on the staffing industry or its clients,” said Ed Lenz, Esq., senior counsel at ASA. “Employer status is based on control of the essential terms and conditions of employment. Because staffing firms and clients share such control, joint employment has always been an inherent aspect of staffing arrangements.
“The key change made by the NLRB from prior rules is that the mere right to control will now be considered sufficient to establish joint employment even if the right is not exercised. Indirect control will also now be sufficient. Although ASA urged the NLRB not to make this change, the final rule will not affect most staffing arrangements.
“The new rules will, however, affect franchise arrangements—a major concern to staffing firms that operate under a franchise model. For the first time, franchisors may be viewed as joint employers of their franchisees’ employees, exposing the franchisor to new and unprecedented potential liability.
“ASA joins other business groups, including the International Franchise Association, in opposing application of joint employer rules to franchisors, which likely will be the subject of litigation.”
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About the American Staffing Association (ASA)
The American Staffing Association is the voice of the U.S. staffing, recruiting, and workforce solutions industry. ASA and its state affiliates advance the interests of the industry across all sectors through advocacy, research, education, and the promotion of high standards of legal, ethical, and professional practices. For more information about ASA, visit americanstaffing.net.