Help Shape What’s Next for NAHB
 
Take the Industry Pulse Check. Learn more
 

Final NLRB Joint Employer Rule is a Win for Small Business Community

Labor
Published

In an important win for NAHB members and the small business community, the National Labor Relations Board (NLRB) released a final rule that clarifies the standard for determining whether two employers are joint employers of a group of workers under the National Labor Relations Act.

This resolves the NLRB’s controversial 2015 decision in the case of Browning-Ferris Industries that radically expanded the traditional test for establishing joint employment. Today’s final rule specifies that an employer may be considered a joint employer of a separate employer’s employees only if the two employers share or codetermine the employees’ essential terms and conditions of employment, which are exclusively defined as wages, benefits, hours of work, hiring, discharge, discipline, supervision, and direction.

Importantly, the final rule retains the requirement that direct and immediate control over essential terms and conditions of employment be “substantial” to give rise to joint-employer status. Control is substantial if it meaningfully affects matters relating to the employment relationship. Such control is not “ substantial” if it is only exercised on a sporadic, isolated, or de minimis basis.

Indirect influence and contractual reservations of authority are no longer sufficient to establish a joint-employer relationship.

NAHB views this NLRB ruling as a positive development because it provides home building firms and small businesses clarity and certainty regarding the joint employer rule by restoring the traditional definition of joint employment in which a company must exercise “direct and immediate control” over a worker in a business-to-business relationship.

In announcing the final rule, NLRB Chairman John Ring said: “With the completion of today’s rule, employers will now have certainty in structuring their business relationships, employees will have a better understanding of their employment circumstances, and unions will have clarity regarding with whom they have a collective-bargaining relationship.”

For more information, contact David Jaffe at 800-368-5242 x8317.

Subscribe to NAHBNow

Log in or create account to subscribe to notifications of new posts.

Log in to subscribe

Latest from NAHBNow

Education

May 08, 2026

Win Business with NAHB's Newest Master Credentials

Certified Master Building Professional (CMBP) and Certified Master Remodeling Professional (CMRP) are designed to set the most accomplished builders and remodelers apart from the rest.

Sponsored Content

May 07, 2026

5 Important Contributions Home Builders Don't Get Enough Credit For

The housing affordability conversation has many villains and very few heroes. Builders rarely make either list, which is part of the problem.

View all

Latest Economic News

Economics

May 07, 2026

Multifamily Developer Confidence Holds Steady in First Quarter

The Multifamily Production Index (MPI) had a reading of 44, unchanged year-over-year, while the Multifamily Occupancy Index (MOI) had a reading of 69, dropping 13 points year-over-year.

Economics

May 06, 2026

State-Level Employment Situation: March 2026

State labor market conditions showed modest improvement in March, with job gains concentrated in several large states and the construction sector continuing to expand. However, employment declines across a number of states and mixed unemployment rate trends point to uneven momentum across regional economies.

Economics

May 06, 2026

Slight Rise for Open Construction Jobs in March

The number of open positions in the construction sector edged higher in March, per the Bureau of Labor Statistics Job Openings and Labor Turnover Survey (JOLTS). The current level of open jobs is down measurably from three years ago due to declines in construction activity, particularly in housing.