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Impact of Joint Employer Rulings

PDF Hospitality Law Conference
Houston, TX
February 23, 2016

Dana A. Kravetz presented on the "Impact of Joint Employer Rulings" at the Hospitality Law Conference in Houston, Texas on February 23, 2016 from 10:00am-10:45am. In this presentation, Dana reviewed what the recent National Labor Relations Board's (NLRB's) highly controversial Browning-Ferris Industries of California (BFI) decision could mean for your business, and how to mitigate risk in light of the decision going forward. He examined how this ruling has likely thrown a mammoth monkey wrench in the traditional hotel franchisor/franchisee model as it revises its test for the joint employer doctrine, dramatically easing the criteria for a company to be considered a joint employer. Under the new standard, a finding of joint employment is much broader, and only requires that a business exercise “indirect” (or potential) control over workers. Hence, under the new test, a company may not only be held liable for its own labor violations, but also for those of the other entity.