NLRB Ruling Potentially Harmful to Home Builders

The National Labor Relations Board recently issued a ruling that changes the long-held definition of joint employers.  The decision expands the current standard, which requires an employer to actually exercise the authority to control, to a broader definition that also includes indirect and potential control over working conditions.  This could include practices of hiring, firing, discipline, supervision and direction.

The home building industry, which is primarily made up of small businesses who rely greatly on the work of sub-contractors, would overwhelmingly be harmed by the new standard.  Builders could become liable for workers they do not even employ, and according to NAHB Chairman Tom Woods, even put them on the hook for legal ramifications.  NAHB has made clear its opposition to the change in standard and plans to fight the new regulatory overreach to help put the control back in the hands of small businesses.