Federal Judge Blocks NLRB's New Joint-Employer Rule

The rule aimed to simplify unionization for workers at large companies by redefining 'joint employers,' but was halted by a Texas court's decision.

A Texas federal judge appointed by Donald Trump vacated the National Labor Relations Board's joint-employer rule, which sought to make it easier for workers to unionize.
The rule would have allowed workers and unions to hold large companies responsible for labor practices at franchises or subcontractors.
Business groups, including the U.S. Chamber of Commerce, hailed the decision as a major victory, arguing it prevents new liabilities for companies.
The NLRB is considering its next steps after the court deemed the rule 'arbitrary and capricious' and contrary to law.
The joint-employer rule was a priority for the Democratic majority at the NLRB, aiming to return the standard to common law principles.