Republic Subsidiary Appeals NLRB Ruling on "Joint Employment"

Date: June 7, 2016

Source: News Room

A subsidiary of Republic Services Inc (Phoenix, AZ) is contesting a ruling by the National Labor Relations Board (NLRB) that labeled the company a "joint employer" even though the workers in question were hired by a staffing agency. In a closely watched case, the company told a U.S. appeals court this week that the new NLRB standard for "joint employment" is so broad and vague that it makes it impossible for employers to structure their business relationships with contractors. Earlier this month, a three-member panel of the NLRB unanimously found that the company's Browning-Ferris subsidiary violated federal labor law by refusing to negotiate with a union (Teamsters Local 350) representing workers at its recycling facility in Milpitas, CA who had been hired by a staffing agency.

Many employers use contract labor in part to avoid the costs and complications that come with directly employing workers. Being categorized as a joint employer makes the company liable for labor law violations and requires it to bargain with worker unions. The ruling sparked immediate and fervent protest from the business community, trade groups and Republican lawmakers concerned that the change could upend the contracting and franchising models across many industries.

In their ruling, the NLRB had said that the existing standard, that defines "joint employers" as only those with "direct and immediate" control over employment matters, was outdated, and did not reflect the realities of the 21st century work force. Workers' rights advocates and unions contend the decision is only an incremental shift that defines employment based on the right to control working conditions.

The case is Browning-Ferris Industries v. NLRB, U.S. Court of Appeals for the D.C. Circuit, Nos. 16-1028, 16-1063 and 16-1064.

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