HR Tips
NLRB abandons controversial joint employer rule
California Uber and Lift drivers remain independent contractors

NLRB abandons 2023 Joint Employer Rule

The National Labor Relations Board (NLRB) has withdrawn its appeal of a federal court decision that blocked the board's joint employer rule. The controversial joint employer rule would have made it far easier for workers to be considered employees of more than one entity. The decision means the joint employer rule from 2020 will remain in effect. Under the rule, NLRB requires that joint employers "(1) 'actually' exercise control over the employees' essential terms and conditions of employment, (2) that such control be 'direct and immediate,' and (3) that such control not be 'limited and routine.'"

While the NLRB indicated it wanted to further consider the issues, pundits suggest that the Supreme Court decision scrapping the long-standing Chevron doctrine precipitated the change.

Uber and Lift drivers remain independent contractors in California

In a major victory for the ride-hailing industry, the California Supreme Court upheld a voter-approved law passed in 2020, known as Proposition 22, that said drivers for companies like Uber and Lyft are independent contractors and are not entitled to benefits like workers comp, overtime pay, paid sick leave, and unemployment insurance. The court dismissed a lawsuit by the Service Employees International Union (SEIU) and four drivers who said the 2020 ballot measure known as Proposition 22, which preserves drivers' contractor status while granting them some benefits, was unconstitutional.