NLRB acts to rewrite law of joint employment

Through its administrative and regulatory arms, the National Labor Relations Board (NLRB) is moving to recast the joint employment law, which will have a profound effect on the entire economy. As the economy has continued its shift to being service- and information-based, the use of contractors and temporary workers has rapidly expanded in the tech, franchise, gig, and other businesses that increasingly rely on nonemployee labor.

YouTube workers recognized as employees

In a recent and unprecedented move, a regional director of the NLRB recognized a group of workers directly employed by a staffing agency working at a YouTube facility as being employees. YouTube (owned by Google) insisted all it did was establish minimum pay standards. Nonetheless, the Board ruled Google has enough control over the workers to be considered a joint employer.

An election was held while Google’s objections were pending, and the workers unanimously voted to become a union. This will compel Google and its parent company, Alphabet Inc., into contract negotiations with a union for the first time in its history.

Google is challenging every part of the Board’s decisions. The prospect of converting its contractors into employees is an existential issue for the company because over half its workers are not classified as “employees.”

Staffing now a function of regulation?