Labor board rules against business in pivotal joint employer decision

The Hill ^ | 08/27/2015 | Tim Devaney

[E. Pluribus Unum]

The Obama administration is redefining what it means to be an employer.

The National Labor Relations Board on Thursday handed down one of the biggest labor decisions of the Obama administration, ruling that a company is equally responsible for labor violations committed by its contractor.

At issue is whether garbage company Browning-Ferris is responsible for the treatment of its contractor’s employees. The Houston-based waste-disposal company hired Leadpoint Business Services to staff a recycling facility in California. The labor board determined Browning-Ferris should be considered a joint employer with the Phoenix-based staffing agency. As a result, the company could be pulled into collective bargaining negotiations with those employees and held liable for any labor violations committed against them.

This is a sharp departure from previous labor laws that help companies be responsible only for employees over whom they have direct control by setting their hours, wages, or job responsibilities. They could get around the requirement by hiring staffing agencies and subcontractors that deal more closely with the workers.

But the National Labor Relations Board charted a new course Thursday. A regional director initially ruled in favor of Browning-Ferris, but the Teamsters union, which represents the workers, appealed the case to the national board.

It’s the latest in a string of major victories for labor groups under the Obama administration, which has already issued several sweeping executive actions on worker protections and wages.

The Democratic-controlled NLRB — which has a recent history of ruling against businesses — has also taken steps to make it easier for employees to unionize.

But the Browning-Ferris decision has generated the most attention from businesses and labor groups alike.

The implications go far beyond Browning-Ferris, businesses say. The ruling seeks to redefine what constitutes an “employer” in the United States and could potentially upend entire industries.

The NLRB’s ruling in Browning-Ferris has been the most anticipated labor decision in years as it could have ripple effects throughout the entire business sector.

The ruling could have an impact on not only Browning-Ferris and other garbage disposal businesses, but also companies such as restaurants, retailers, manufacturers, hotels, cleaning services, construction firms, security providers and staffing agencies.

Businesses are threatening to cut ties with staffing agencies that help recruit temporary workers and subcontractors that provide janitorial and security services, because they don’t want to be responsible for another company’s employees. They say they would rather bring those jobs in-house to establish more control over the situation.

Restaurants could see the biggest changes. Fast food chains like McDonald’s and Burger King will likely assert more authority — or could even cut ties altogether — with local franchise owners, businesses say.

[Plain Old American]

So if a company is responsible as a co-employer are they not also then responsible for providing health care under the Obamacare stuff??

[Covenantor]

Well, certainly they’ll get hit but the temp worker agencies aren’t as big as the construction industry chain.

If I read it correctly the NLRB has changed the fundamentals of contract law, all part of Obama/Jarret masterplan of destruction.

The construction chain would extend to manufacturer and fabricators of every element/component involved in General Construction.

[ExTxMarine]

Also, Bimbo bread and their drivers, Just about ALL trucking companies are contract labor to a supplier/manufacturer.

Does this mean that Miller Brewing is now responsible for the contract driver that delivers their product to the distributor? Is the local 7-eleven now responsible for the labor relations between the distributor and their drivers?

This is an ugly mess that simply is WITHOUT REASON!! I can only control those whom I directly hire, fire, discipline, and schedule. Everything else is OUT OF MY CONTROL!

[Buckeye McFrog]

The way I read it this creates a huge disincentive for employers to use contract labor. If you are ultimately going to be held responsible you might as well directly employ them and cut out the middle man.

Which makes things far, far easier for.....UNION ORGANIZERS!

You knew that had to be the point of this, didn’t you?

[NormsRevenge]

Obammy appointed board ruled against aka skrews American businesses

Film and wailing at 11..

On Al Jazeeera.

Oh shoot. I dozed off. Huh?

[familyop]

The most influential constituents in politics obviously love government employee unions, so let them deal with private sector unions, too.

[VeniVidiVici]

FedEx Ground & Freight are, not Express.

Freight does contract out some routes but I believe most of their drivers are company.

[HeartlandOfAmerica]

if a company is responsible as a co-employer are they not also then responsible for providing health care under the Obamacare stuff??

And where is this ridiculous 30 hr work week gonna fit in this disaster?

And the huge fines for companies who go ahead and provide employee health insurance?

Cloward-Piven Here we come!

Dems BETTER take the WH and Congress. People are gonna HATE liberals for all the damage they're doing.