Dive Brief:
- A revised NLRB rule is giving small businesses problems in that they are experiencing higher labor costs and delaying expansion plans, according to the Wall Street Journal. It's not making large fast food and hospitality chains very happy either.
- The rule was revised with the idea of holding employers more accountable for labor law violations against workers whose working conditions they control but who are not classified as their employees.
- With the new rule, "joint-employer" workers receive an easier path to reporting workplace grievances and union organizing, the Journal reports.
Dive Insight:
Richard Griffin, the NLRB's general counsel, told the Journal that some businesses "want to have active involvement in the determination of terms and conditions of employment and in the direction of the employees at work, but they don't want to take responsibility for it."
The NRLB revised rule also means unions no longer need employer consent to represent employees in bargaining units that combine both solely and jointly employed employees (the latter usually being temporary workers) of a single employer. The Journal article highlights a few small businesses that have had their situations negatively affected by the new ruling.
On the legal front, things are already heating up, as the Journal reports that labor and employment law firm Littler Mendelson found more than 50 joint-employer charges have been filed against franchises since Sept. 1, with another 80 charges against franchise businesses as possible NLRB complaints. For HR leaders in the fast food and hospitality sectors, the situation is one that needs close attention.
