Gig Workers — Judge Blocks Controversial New Rule

A new rule on gig workers by the National Labor Relations Board (NLRB) has been stopped by U.S. District Judge J. Campbell Barker. The Texas judge said the NLRB rule — set to go into effect on March 10th — is too broad and violates federal labor laws.

Barker agreed with the company challengers that include the U.S. Chamber of Commerce that the rule treats some companies as the employers of a gig, or a contract worker, when that company has almost no control over the working conditions of that worker.

The judge wrote that the rule will “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 NLRB’s chairperson, Lauren McFerran said the organization will likely appeal to the 5th U.S. Court of Appeals in New Orleans.

“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,” McFerren said.

Companies that do a lot of manufacturing and construction use staffing agencies and contractors to give them workers. The NLRB rule treats them like joint employers because the company has control over key conditions in the workplace like pay, scheduling, discipline and supervision — even when that control is indirect.

The NLRB believes these contract employees are entitled to minimum wages, overtime pay and other legal protections.

Companies contend considering gig and contract employees as company employees could cost them up to 30% more to employ them.

Source link: Insurance Journal —

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