THE NATIONAL LABOR Relations Board recently withdrew its appeal of a Texas judge's ruling blocking its joint employer rule that would have broadened the
shared responsibility for employees between franchisers and franchisees. Opponents of the rule said it would have damaged small businesses, including hotels,
while President Joe Biden's administration said it would better enable employees to protect their rights.
On Friday, the NLRB asked the U.S. Court of Appeals for the Fifth Circuit to dismiss its challenge, saying it believes the rule is lawful but wants "to consider
options for addressing the outstanding joint employer matters before it," according to Bloomberg Law.
The appeal had been related to a March 8 ruling in a lawsuit filed in the U.S. District Court for the Eastern District of Texas by the American Hotel & Lodging
Association, the U.S. Chamber of Commerce and other business associations challenging the rule's legality.
MORE ASSOCIATIONS ARE joining the American Hotel & Lodging Association in protesting the National Labor Relations Board's recently issued final ruling
on the definition of joint-employer status. The ruling essentially broadens the definition to any "entity that has an employment relationship with the
employees," and AAHOA, AHLA and the other associations say it could damage the current franchise business model.
NLRB's new standard, issued last week, defines a joint employer to be any company that shares or codetermines one or more essential terms and conditions of
employment. Those include:
Wages, benefits, and other compensation.
Hours of work and scheduling.
The assignment of duties to be performed.
The supervision of the performance of duties.
Work rules and directions governing the manner, means, and methods of the performance of duties and the grounds for discipline.
The tenure of employment, including hiring and discharge.
Working conditions related to the safety and health of employees.