National Restaurant Association of America
07/19/2024 | Press release | Distributed by Public on 07/19/2024 15:12
Restaurant Industry Notches Win in Battle Against NLRB Joint Employer Rule
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July 19, 2024
Restaurant Industry Notches Win in Battle Against NLRB Joint Employer Rule
The NLRB withdrew its appeal to the 5th Circut decision vacating the 2023 Joint Employer Rule, putting a "direct and immediate" standard back in place.
Washington, D.C. - Today the National Labor Relations Board (NLRB) was granted a request to withdraw its appeal of the United States District Court in the Eastern District of Texas decision vacating the 2023 Joint Employer Rule. This means that the long-established "direct and immediate" joint employer standard will again be in place, providing clear and stable guidance for foodservice employers and employees.
"This is a major victory in the long fight that franchise operators, the restaurant industry, and the Restaurant Law Center have been waging with the NLRB over the Joint Employer Rule," said Sean Kennedy, executive vice president of Public Affairs for the National Restaurant Association. "Today, restaurant operators have clarity and certainty on how to determine joint employer status now and in the future. This means operators can once again confidently focus on growing their businesses and feeding their communities."
"The Restaurant Law Center welcomes the dismissal of the NLRB's appeal," said Angelo I. Amador, executive director of the Restaurant Law Center, a leading co-plaintiff in the legal challenge. "If the new Joint Employer rule had been allowed to stand, it would have imposed joint-and-several liability on virtually every entity that hires contractors subject to routine parameters or on any employer that collaborates with a third party of any kind in achieving common goals that have an incidental or indirect effect on the third party's employees. In other words, it was an unmanageable standard. Nothing in the National Labor Relations Act or common law compelled such an approach."
The vacated 2023 NLRB Joint Employer rule attempted to establish a joint-employer relationship even if there was only indirect or potential/reserve control over another employer's workers. For decades, the NLRB had found that the essential element of a joint-employer relationship is whether a presumed joint employer's control over employment matters is "direct and immediate."
"This is a major victory in the long fight that franchise operators, the restaurant industry, and the Restaurant Law Center have been waging with the NLRB over the Joint Employer Rule," said Sean Kennedy, executive vice president of Public Affairs for the National Restaurant Association. "Today, restaurant operators have clarity and certainty on how to determine joint employer status now and in the future. This means operators can once again confidently focus on growing their businesses and feeding their communities."
"The Restaurant Law Center welcomes the dismissal of the NLRB's appeal," said Angelo I. Amador, executive director of the Restaurant Law Center, a leading co-plaintiff in the legal challenge. "If the new Joint Employer rule had been allowed to stand, it would have imposed joint-and-several liability on virtually every entity that hires contractors subject to routine parameters or on any employer that collaborates with a third party of any kind in achieving common goals that have an incidental or indirect effect on the third party's employees. In other words, it was an unmanageable standard. Nothing in the National Labor Relations Act or common law compelled such an approach."
The vacated 2023 NLRB Joint Employer rule attempted to establish a joint-employer relationship even if there was only indirect or potential/reserve control over another employer's workers. For decades, the NLRB had found that the essential element of a joint-employer relationship is whether a presumed joint employer's control over employment matters is "direct and immediate."
About the National Restaurant Association
Founded in 1919, the National Restaurant Association is the leading business association for the restaurant industry, which comprises more than 1 million restaurant and foodservice outlets and a workforce of 15.5 million employees. Together with 52 State Associations, we are a network of professional organizations dedicated to serving every restaurant through advocacy, education, and food safety. We sponsor the industry's largest trade show (National Restaurant Association Show); leading food safety training and certification program (ServSafe); unique career-building high school program (the NRAEF's ProStart). For more information, visit Restaurant.org and find @WeRRestaurants on Twitter, Facebook and YouTube.
About the Restaurant Law Center
The Restaurant Law Center (Law Center) is an independent public policy organization affiliated with the National Restaurant Association. It was established to enhance the industry's voice in the judicial and regulatory arena. The Law Center works to protect and advance the restaurant industry and promote pro-business laws and regulations that allow restaurants to continue to grow, create jobs and contribute to a robust American economy. Find more information at restaurantlawcenter.org.
Vanessa Sink
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