Late last week, the National Labor Relations Board (NLRB) voluntarily withdrew its appeal of a district court ruling that enjoined its “joint employer” final rule. The
NLRB said it was withdrawing its appeal “to further consider the issues identified in the district court’s opinion” and indicated that it may file a new appeal in the future. The U.S. Chamber of Commerce
reacted to this NLRB withdrawal decision, noting it is a “major legal victory.”
On October 26, 2023, the NLRB issued the final
joint employer rule that broadens the NLRB's definition of “employer” and could potentially increase liability and exposure for long-term care centers if they utilize staffing agency or contract workers. On November 9, 2023, the U.S. Chamber and a coalition of business groups filed a lawsuit challenging the NLRB’s joint employer rule as “statutorily unauthorized and arbitrary and capricious.” On March 8, the U.S. District Court for the Eastern District of Texas vacated the NLRB’s joint employer rule that was going to be implemented on March 11. More details on the case can be found on the
U.S. Chamber’s website. AHCA/NCAL applauded the Court’s decision.