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NLRB Announces Final Joint Employer Rule

February 26, 2020

Original content c/o: National Restaurant Association

The Association has worked for more than five years to advocate for the type of change enacted in the National Labor Relations Board's final rule.

The National Labor Relations Board (NLRB) said today it would issue its final joint employer rule. The National Restaurant Association has worked for more than five years with NLRB, congress and key stakeholders to advocate for the type of change enacted by the agency in this final rule.

“With the completion of today’s rule, employers will now have certainty in structuring their business relationships, employees will have a better understanding of their employment circumstances, and unions will have clarity regarding with whom they have a collective-bargaining relationship,” NLRB Chairman John Ring said in an agency press release.

Association Vice President of Public Policy Shannon Meade praised the NLRB for its transparent and thorough rulemaking process. “For five years, these independent businesses, many of which are single-unit franchises, have faced serious threats of regulatory non-compliance and legal action that have restricted capital investment and stifled growth and job creation.”

She added, “By overturning the controversial and convoluted Browning-Ferris decision, the National Labor Relations Board has enacted a clear, actionable, and predictable approach to joint employment based on a thorough and transparent rule-making process.”

To learn more, click here to read information from NLRB’s website or click here to read a fact sheet prepared by NLRB.

The final rule takes effect April 27.