STATE:

Why NFIB

Take Action

Get Support

Stay Informed

Podcast Podcast

Careers Careers

Join Now

Home / News / Analysis /

NLRB’s Final Joint-Employer Rule Expands Employer Liability Under the National Labor Relations Act

October 31, 2023

Final rule complicates the joint-employer standard for franchise owners, contractors, and small businesses.

NLRB's Final Joint-Employer Rule Expands Employer Liability Under the National Labor Relations Act

The National Labor Relations Board (NLRB) came out with a final joint-employer rule that will rescind and replace the previous joint-employer standard enacted in 2020. The Board’s new standard significantly expands when employers are deemed a joint-employer under the National Labor Relations Act. “NFIB is extremely disappointed by the Board’s new joint-employer rule,” said Elizabeth Milito, Executive Director of the NFIB Small Business Legal Center. ”It is one more onerous regulatory change for small businesses to navigate.” NFIB supported the U.S. Department of Labor’s previous joint-employer rule in 2020, which simplified the determination of joint-employer status. It focused on the actual exercise of control over workers to determine joint-employer status. The new standard is much broader, permitting employers who have indirect control or unexercised control to be classified as joint-employers. “The arbitrary standards outlined in this rule will make compliance a nightmare for small business owners who do not have the teams of lawyers, accountants, and compliance staff needed to navigate these vague and subjective definitions,” added Milito. “Also concerning is that the rule expressly declined to exempt franchises and small businesses. Independent franchisees may lose control over their workforce under the new standard.” Milito continues: “NFIB agrees with dissenting member Kaplan that this new joint-employer standard is ‘catastrophic’ and urges the NLRB to seek a standard that provides the clarity and consistency that small businesses need.” The NFIB Small Business Legal Center protects the rights of small business owners in the nation’s courts. NFIB is currently active in more than 40 cases in federal and state courts across the country and in the U.S. Supreme Court.

Vote Your NFIB Federal Ballot NFIB has a proven track record of getting results on the issues that matter most to small business owners by challenging existing laws and regulations and speaking out on introduced legislation that would impact small business. Voting on NFIB’s current Federal Issues Ballot – ballot #583 – remains open, and our member votes are critical in guiding our advocacy efforts. NFIB members can cast their votes by logging into their account at NFIB.com/votemyballot.

Topics:

Labor

Get to know NFIB

NFIB is a member-driven organization advocating on behalf of small and independent businesses nationwide.

Learn More

April 8, 2026

Price Pressures Have Eased, but Small Businesses Still Feel the Squeeze

Small business owners face many daily operational challenges, and elevated inflation adds one more challenge to the list.

April 8, 2026

Small Businesses Oppose Overreaching Federal Heat Standard

WASHINGTON, D.C. (April 8, 2026) – The National Federation of Independent Business (NFIB), the nation’s leading small business advocacy organization, opposes t…

April 7, 2026

Online Dispute Resolution: Practical Steps for Resolving Business Disputes

Business disputes can arise for many reasons and may involve anyone, including customers, clients, vendors, partners, and service providers.

April 2, 2026

NFIB Jobs Report: Employment Index Pulls Back

WASHINGTON, D.C. (April 2, 2026) – NFIB’s March Jobs Report shows that the Small Business Employment Index fell 1.9 points to 101.6. Despite the decline, the c…

NLRB's Final Joint-Employer Rule Expands Employer Liability Under the National Labor Relations Act

Related Articles