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September 2, 2015

Industry groups say NLRB ruling can hurt small firms

  • Before the ruling, companies had to have exercised “direct operational and supervisory control” over employees to be considered joint employers.
    • By JOYCE M. ROSENBERG
    AP Business Writer

    A National Labor Relations Board ruling that modified the definition of an employer could hurt small businesses including franchises and subcontractors, according to industry groups that advocate for those companies.

    The NLRB decision last week came in a case involving waste management company Browning-Ferris Industries and a staffing company, Leadpoint Business Services, which supplied workers to Browning-Ferris. The NLRB ruled that Browning-Ferris is a joint employer with Leadpoint. The board said it will consider factors such as whether a company exercised control over employees “indirectly through an intermediary, or whether it has reserved the authority to do so” in determining whether companies are joint employers.


     
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