Catherwood LibraryILR School

A legal battle over the National Labor Relations Board's (NLRB) rule on joint employers has been temporarily halted in a Washington, D.C. court. This rule is crucial, as it defines the conditions under which two companies can be seen as jointly responsible for employee rights and union negotiations. A US Chamber of Commerce-led business coalition has initiated a lawsuit in Texas to challenge the rule for being too broad. The case caught enough attention that the NLRB decided to appeal in the Fifth Circuit Court, known for its tough stance on labor issues. With the case now underway, the D.C. court has chosen to wait for the outcome in Texas before proceeding. This pause allows the courts to manage overlapping legal arguments, underlining the significance of the rule's potential impact on the liability and collective bargaining responsibilities of companies that share employees through contracts or franchises.