NLRB reverts to joint employer rule it crafted in Trump’s first term | Construction Dive
Summary
The NLRB has reverted to the 2020 joint employer rule established during the Trump administration, withdrawing the Biden-era standard and emphasizing substantial direct control over employment terms.
Why It Matters
This decision reflects ongoing shifts in labor policy and impacts how joint employer status is determined, influencing worker rights and employer responsibilities. It highlights the contentious nature of labor relations in the U.S. and the legal complexities surrounding employment standards.
Key Takeaways
- NLRB withdraws the Biden-era joint employer rule, reinstating the 2020 standard.
- The 2020 rule defines joint employer status based on substantial direct control over employment terms.
- This change may affect workers' rights and corporate accountability in labor relations.
An article from NLRB reverts to joint employer rule it crafted in Trump’s first term The board said it maintains the “substantial direct and immediate control” it articulated in 2020. Published Feb. 27, 2026 Ryan Golden Senior Reporter Share Copy link Email LinkedIn X/Twitter Facebook Print License Add us on Google The National Labor Relations Board's headquarters building in Washington, D.C., on Sept. 10, 2024. The agency issued a final rule to withdraw its Biden-era joint employer standard on Feb. 26, 2026. Ryan Golden/Construction Dive First published on The National Labor Relations Board announced a final rule Thursday to withdraw its Biden-era joint employer rule in favor of a standard it adopted in 2020 during the first Trump administration. A federal judge previously vacated the now-withdrawn rule — which was published in 2023 — because it was both “contrary to law” and “arbitrary and capricious,” following a challenge filed by business groups. NLRB said the 2023 rule has never taken effect and that the 2020 rule was and remains the operative rule for determining joint employer status under the National Labor Relations Act. NLRB also said it determined that good cause existed for issuing Thursday’s rule without prior notice and opportunity for public comment. The withdrawal of the 2023 rule is effective immediately. “Our action is ministerial and therefore will have no separate economic effect,” the board wrote. Joint employer status has had a long, back-and-forth h...