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Nlrb V Staffing-Ferris Industries Case Summary

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On Thursday, August 27, 10152015, in a pivotal decision rendered in a matter involving Browning-Ferris Industries of California, Inc., the National Labor Relations Board (the “NLRB” or the “Board”) revised its standard for determining joint employer status within the meaning of the National Labor Relations Act (the “Act”) and ruled that companies can be held responsible for labor violations committed by their contractors. In the past, the Board basically followed a common law standard articulated in a Third Circuit Court of Appeals decision, NLRB v. Browning-Ferris Industries of Pennsylvania, Inc., 691 F.2d 1117 (3d Cir. 1982), finding joint employer status where two or more entities are “both employers within the meaning of the common law, and if they share or codetermine those matters governing the essential terms and conditions of employment” such as hiring, firing, discipline, supervision and direction, wages and hours. Other examples of such control include scheduling, dictating the number of workers to be supplied, …show more content…
the staffing agency), makes personnel decisions and administers job performance on a day-to day basis pursuant to the user firm’s guidance or dictates, the employees’ working conditions are a byproduct of two layers of control. To focus only on the staffing agency’s direct and immediate control over the worker ignores the substantial control the user firm has over the workers’ terms and conditions of employment. The Board found that the result of narrowing the common law standard may deprive employees of their statutory right under the Act to bargain effectively over wages, hours and working conditions solely because they work under an arrangement involving two or more employing

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