A federal district court announced that it will vacate the so-called joint employer rule that threatened to upend the franchise business model and to impose massive new responsibilities and legal liabilities onto businesses for supposed employees over whom they have no direct control.
U.S. District Court Judge J. Campbell Barker’s decision Friday held that enforcement of the National Labor Relations Board’s 2023 joint employer rule “would be contrary to law” and that its rescission of the current 2020 rule was arbitrary and capricious.
Beyond just preventing enforcement of the new rule, the decision stated that “the court will issue a final judgment vacating the 2023 Rule.” That means that the 2020 rule will remain in effect.
The 2023 joint employer rule was set to take effect on Monday. It was contrary to the current 2020 rule, which specifies that for…
