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BumRushDaShow

(129,737 posts) Sun Mar 10, 2024, 06:32 AM Mar 10

Judge blocks US labor board rule on contract and franchise workers

Source: Reuters

March 9, 2024 6:59 PM EST Updated 10 hours ago

March 8 (Reuters) - A federal judge in Texas on Friday struck down a U.S. National Labor Relations Board (NLRB) rule that would treat many companies as employers of certain contract and franchise workers and require them to bargain with unions representing them.

U.S. District Judge J. Campbell Barker in Tyler agreed with the challengers to the "joint employers" rule, including the U.S. Chamber of Commerce, that it is too broad and violates federal labor law. The rule, issued in October, had been set to take effect on Monday.

Barker said the rule is invalid because it would treat some companies as the employers of contract or franchise workers even when they lacked any meaningful control over their working conditions. The rule "would treat virtually every entity that contracts for labor as a joint employer because virtually every contract for third-party labor has terms that impact, at least indirectly ... essential terms and conditions of employment," the judge wrote.

“The District Court’s decision to vacate the Board’s rule is a disappointing setback, but is not the last word on our efforts to return our joint-employer standard to the common law principles that have been endorsed by other courts," NLRB Chair Lauren McFerran said in a statement. McFerran added the NLRB was "actively considering next steps" in the case. The Chamber of Commerce did not respond to a request for comment. The NLRB is expected to appeal Barker's decision to the New Orleans-based 5th U.S. Circuit Court of Appeals.

Read more: https://www.reuters.com/legal/us-judge-blocks-us-labor-boards-rule-involving-contract-franchise-workers-2024-03-09/

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Judge blocks US labor board rule on contract and franchise workers (Original Post) BumRushDaShow Mar 10 OP

This is a finding which inhibits unionization of franchise workers like at McDonalds, or Starbuck's, among others. Ford_Prefect Mar 10 #1

And you see where this ruling happened BumRushDaShow Mar 10 #2

The judge is a Trump appointee and that may factor into it. However, the Chamber of Commerce does have Ford_Prefect Mar 10 #3

Isn't it amazing that almost all federal rules and. challenges end up sinkingfeeling Mar 10 #4

Also see this post in the Labor Group Omaha Steve Mar 10 #5

This would allow groups like Roark that dominate fast food to keep millions below the poverty level. pecosbob Mar 10 #6

Ford_Prefect

(7,927 posts)

1. This is a finding which inhibits unionization of franchise workers like at McDonalds, or Starbuck's, among others.

Reply to BumRushDaShow (Original post)

Sun Mar 10, 2024, 07:45 AM

Mar 10

It began last November when the rule was put in place by the NRLB. The US Chamber of Commerce files suit to block the rule claiming it unfairly favors unions.

https://money.usnews.com/investing/news/articles/2023-11-09/business-groups-sue-us-labor-board-to-block-contract-franchise-worker-rule
By Reuters
|
Nov. 9, 2023, at 2:41 p.m.

Several major U.S. business groups sued a federal labor board on Thursday, seeking to strike down a rule treating many companies as employers of contract and franchise workers and requiring them to bargain with their unions.

The groups said the rule will cost businesses billions of dollars and cause disruptions in an array of industries including retail, construction, hospitality and healthcare.

The rule issued by the National Labor Relations Board (NLRB) will treat companies as "joint employers" of contract and franchise workers when they have control over key working conditions such as pay, scheduling, discipline and supervision, even if it is indirect or not exercised.

Joint employers can be held liable for violating workers' rights to organize and can be made to bargain with unions representing contract or franchise employees.

BumRushDaShow

(129,737 posts)

2. And you see where this ruling happened

Reply to Ford_Prefect (Reply #1)

Sun Mar 10, 2024, 07:50 AM

Mar 10

...in the place where legal sanity ends and zealotry is a feature and not a bug.

Ford_Prefect

(7,927 posts)

3. The judge is a Trump appointee and that may factor into it. However, the Chamber of Commerce does have

Reply to BumRushDaShow (Reply #2)

Sun Mar 10, 2024, 08:07 AM

Mar 10

a large presence in such matters and speaks with a well polished tongue.

The purpose of the rule was to accomplish exactly what the Chamber is complaining about: to hold franchise and contract employers to account regarding safe working conditions, including hours, and fair pay practices. It seems that in some states and on some sites different rules apply to those who work contract or temp. I believe the rule was intended to make a fair floor for those employees.