A coalition of business groups, led by the US Chamber of Commerce, is challenging the National Labor Relations Board’s new joint employer rule in court. The plaintiffs argue that the rule is overly broad and arbitrary, violating federal labor law and administrative law. They claim that the new standard for joint employment will disrupt business-to-business arrangements and pose significant financial liabilities and costs for companies. The group is seeking to have the rule struck down by the court.
In their motion for summary judgment, the business coalition expressed concerns about the potential billions of dollars in liability and costs that the new joint employer rule could impose. They emphasized the need to replace the unclear and disruptive standard with a clear test for joint employment that aligns with federal labor and administrative law. The groups moved quickly to challenge the rule, filing a lawsuit on November 9th and following up with a request for briefing from the Trump-appointed judge overseeing the case, Judge Campbell Barker. The outcome of this legal battle could have significant implications for businesses and the interpretation of joint employment laws.
It is evident that the business coalition is deeply concerned about the consequences of the National Labor Relations Board’s new joint employer rule. They are taking strategic legal action to challenge the rule and seek its dismissal by the court. The potential financial liabilities and disruptions to business-to-business arrangements are at the forefront of the coalition’s arguments, highlighting the high stakes involved in this legal battle. The outcome of this case could have far-reaching implications for businesses and the enforcement of joint employment laws.
