Over the past two years, the National Labor Relations Board (NLRB), on behalf of labor unions, has expanded the definition of a “joint employer” to potentially include common business arrangements for the sake of enhanced collective bargaining. 

The August 2015 Browning Ferris Industries (BFI) decision changed the definition to include situations where one entity exercises some level of control over the conditions of employment of another entity’s employees. This has manifested itself for ICSC members through security contracts, parking attendant agreements and had a significant impact on franchise tenants. A recent study found that the new joint employer standard may slow job growth in franchise companies and could result in 1.7 million fewer jobs in the entire private sector.

The United States Appeals Court is presently reviewing the legality of the NLRB’s BFI ruling. ICSC will continue to work with Members of Congress in the creation and support of legislation that would restore the decades-long and widely-accepted definition of what constitutes a joint employer.

For more information, please contact Tyler McIntosh at tmcintosh@icsc.org