NLRB Issues Final Rule Withdrawing 2023 Standard for Determining Joint Employer Status

The National Labor Relations Board (NLRB) issued a final rule withdrawing the 2023 standard for determining joint employer status.

On October 27, 2023, NLRB published a final rule (2023 Rule) that rescinded and replaced a prior rule regarding the standard for determining joint employer status under the National Labor Relations Act. On March 8, 2024, the U.S. District Court for the Eastern District of Texas issued an order vacating the 2023 Rule. 

As the 2023 Rule has never taken effect, the prior rule titled “Joint Employer Status Under the National Labor Relations Act,” which was promulgated on February 26, 2020 (2020 Rule), remains the operative rule for determining joint employer status. 85 FR 11184 (Feb. 26, 2020), codified at 29 CFR 103.40. In accordance with the district court’s order, NLRB revises 29 CFR subpart D to replace the text of the vacated 2023 Rule with the text of the 2020 Rule, which remains in effect.