NLRB Withdraws Appeal of District Court Ruling Enjoining SWACCA-Supported Joint Employer Final Rule
The National Labor Relations Board (NLRB) voluntarily dismissed its appeal of a Texas federal judge’s decision enjoining its SWACCA-supported final joint employer rule, telling the Fifth Circuit that it would “like the opportunity to further consider the issues identified in the district court’s opinion” and that dismissal would “allow it to consider options for addressing the outstanding joint employer matters before it.” The NLRB added that it “remains of the opinion” that the joint employer rule is lawful. As a result of the dismissal, the final joint employer rule remains effectively blocked due to the Texas district court’s decision. As you may recall, SWACCA submitted comments in December 2022 in support of the Biden Administration’s joint employer rule, and defended the rule in Congress from efforts to overturn the rule through the Congressional Review Act process.
In response to the NLRB’s move, Senate Health, Education, Labor, and Pensions Committee Ranking Member Bill Cassidy (R-LA) said that the NLRB’s voluntary dismissal is a “win for the nine million American workers that earn a living from a franchise business” and that the Trump-era joint employer standard will now remain in effect.
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