NLRB Rolls Back Joint Employer Rule to 2020 Version
Published Date: 2/27/2026
Rule
Summary
The National Labor Relations Board is rolling back its 2023 rule about when two companies count as joint employers and going back to the 2020 rule instead. This change affects businesses and workers by keeping the older, simpler standard in place. The rollback officially kicks in on February 27, 2026, so everyone knows which rules to follow without confusion or extra costs.
Analyzed Economic Effects
1 provisions identified: 0 benefits, 0 costs, 1 mixed.
NLRB Reverts to 2020 Joint-Employer Rule
The National Labor Relations Board is replacing the vacated 2023 joint-employer rule with the earlier 2020 rule, effective February 27, 2026. The 2023 Rule was vacated by the U.S. District Court for the Eastern District of Texas on March 8, 2024, so the operative standard (codified at 29 CFR 103.40) is that two employers are joint employers only if they share or codetermine the employees' "essential terms and conditions of employment," which the rule lists as wages, benefits, hours of work, hiring, discharge, discipline, supervision, and direction. The Board states this action is ministerial and will have no separate economic effect.
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