Companies Are on the Hook for Contractors’ Labor Policies, NLRB Says
The National Labor Relations Board ruled Thursday that companies using workers hired by another business — such as staffing agencies, contractors or even fast-food franchises — are still on the hook for labor violations and could be required to bargain with unions representing those employees.
The NLRB’s 3-2 ruling was handed down in the case of Browning-Ferris Industries, a Houston waste management company that used a subcontractor, Leadpoint Business Services, to staff its recycling center in Milpitas, Calif. The ruling determined that Browning-Ferris, which is part of Republic Services Inc., was a “joint employer” even though it didn’t directly hire or have immediate control over people hired by Leadpoint.
The decision will have far-reaching effects on the relationship between corporations and employees in America, especially at a time when many businesses are turning to temporary workers instead of hiring full-time employees. It’s also a striking change from past labor laws, which doled out responsibility only to companies with direct control over hours, wages and working conditions for employees.
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