Granger MacDonald, chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Kerrville, Texas, issued the following statement regarding the National Labor Relations Board’s (NLRB) reversal of an Obama-era decision that had vastly redefined joint employer status:
“NAHB applauds the NLRB decision to overturn its ruling in the case of Browning-Ferris Industries that radically expanded the traditional test for joint employer status. The Browning-Ferris decision in 2015 made the standard for joint employment so broad and vague that an employer could be held liable for the labor and employment practices of independent contractors and subcontractors over which they have no direct control.
“By rescinding the Browning-Ferris standard, the NLRB has restored 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. Home building firms and other small businesses who work closely with subcontractors and third-party vendors will now have more certainty and clarity regarding their employment decisions. The NLRB action restores the sensible criteria that has worked so well for the economy for more than 30 years.”