Paul Woody Shares Insights with SHRM on NLRB’s Expanded Joint-Employer Rule
Paul Woody, a Franchise attorney with Greensfelder, offered insights into the implications of the National Labor Relations Board's (NLRB) new joint employer rule. Under the previous rule, a company was considered a joint employer if it exercised direct control over the terms and conditions of employment. However, the new rule expands this definition to include companies that exercise indirect control or reserve the right to control essential employment terms and conditions, even if they haven't exercised that control. Woody highlights the resulting lack of clarity and increased uncertainty for businesses, emphasizing the potential costs and consequences. He recommended a comprehensive review of contracts, policies, and interactions with franchisees and licensees to navigate the complexities introduced by the rule.
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