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U.S. labor board moves to ease companies' liability for contractor, franchisee violations
Source: Reuters
BUSINESS NEWS SEPTEMBER 13, 2018 / 12:33 PM / UPDATED 20 MINUTES AGO
U.S. labor board moves to ease companies’ liability for contractor, franchisee violations
Daniel Wiessner
2 MIN READ
(Reuters) - The U.S. agency that enforces federal labor law on Thursday took the first steps toward loosening an Obama-era standard that made it easier to hold companies liable for illegal labor practices by their contractors and franchisees.
The five-member National Labor Relations Board, whose majority was appointed by President Donald Trump, proposed a rule that would restore an earlier standard. Under it companies were considered to be so-called joint employers with their contractors or franchisees only when they exercised direct control over labor issues such as hiring and firing workers and setting wages.
In a 2015 decision, the NLRB had said a company could be a joint employer when it has indirect influence over the working conditions of a contractor’s employees. Joint employers can be held liable for labor law violations and required to bargain with unions representing contract workers.
Overturning that standard has been a top priority of business groups, which say the Obama-era ruling could upend supply chains and the franchise model.
-snip-
U.S. labor board moves to ease companies’ liability for contractor, franchisee violations
Daniel Wiessner
2 MIN READ
(Reuters) - The U.S. agency that enforces federal labor law on Thursday took the first steps toward loosening an Obama-era standard that made it easier to hold companies liable for illegal labor practices by their contractors and franchisees.
The five-member National Labor Relations Board, whose majority was appointed by President Donald Trump, proposed a rule that would restore an earlier standard. Under it companies were considered to be so-called joint employers with their contractors or franchisees only when they exercised direct control over labor issues such as hiring and firing workers and setting wages.
In a 2015 decision, the NLRB had said a company could be a joint employer when it has indirect influence over the working conditions of a contractor’s employees. Joint employers can be held liable for labor law violations and required to bargain with unions representing contract workers.
Overturning that standard has been a top priority of business groups, which say the Obama-era ruling could upend supply chains and the franchise model.
-snip-
Read more: https://www.reuters.com/article/us-usa-labor/u-s-labor-board-moves-to-ease-companies-liability-for-contractor-franchisee-violations-idUSKCN1LT2OW
