MUH LEGACY
A federal appeals court has ruled that an Obama-era labor law that made businesses responsible for labor violations committed by contractors was too broad, Reuters reports.
The National Labor Relations Board (NLRB) ruled in 2015 that companies and franchisers with “indirect and direct control” of employees could be held liable for labor violations committed by contractors or franchisees. The D.C. Circuit Court of Appeals ruled 2-1 that the board did not sufficiently define “indirect” control and sent the 2015 decision back to the board for a more restricted explanation.
The Obama-era NLRB’s decision threatened to topple the current franchise business model. After the 2015 ruling, many franchisers began pulling back that support and guidance to avoid being classified as an employer with “indirect control.”
https://www.bizpacreview.com/2018/12/30/court-axes-obamas-pro-union-joint-employer-rule-708120
