The National Labor Relations Board’s (NLRB’s) top lawyer recently threw the fast food industry into turmoil by indicating that McDonald’s could be jointly responsible for employees, along with its franchisees. But other NLRB actions and court decisions have taken the issue of joint employers, independent contractors, and leased employees far beyond a single industry. These changes could profoundly impact the liability and responsibility companies have regarding contractors and contingent employees. Consider:
• The NLRB has announced that it is considering a sweeping overhaul of the decades-old definition of joint employer, through the Browning-Ferris Industries of California, Inc., et al. case. That case involves subcontractors and who exactly employs them: Browning-Ferris, its subcontractor Leadpoint, or both. Sanitary Truck Drivers and Helpers Local 350, which is seeking to represent the employees, requested a ruling on which company employs the workers. If the NLRB determines that Browning-Ferris jointly employs the workers, it would mark a dramatic change in the ways that employers and their subcontractors have operated for years.