What just happened: The 2023 Joint Employer Rule, the most harmful federal labor rule in over a decade, is dead. Today, the U.S. Court of Appeals for the D.C. Circuit dismissed a case brought by the Service Employees International Union (SEIU) alleging that the National Labor Relations Board (NLRB) did not go far enough with the Rule. This was the last step needed to completely void the rule. The Restaurant Law Center (RLC) had intervened in this case with other business groups and jointly petitioned the court for the case’s dismissal.
What this means: After almost two years of fighting the NLRB’s terrible 2023 Joint Employer Rule, the long-established “direct and immediate” joint employer standard will again be in place, providing clear and stable guidance for foodservice employers and employees.
Go deeper: This is a huge win for the Association, the RLC, and our members. RLC worked closely with other business groups to intervene in this case on behalf of restaurant owners. This win follows a similar win in the United States District Court in the Eastern District of Texas, where the NLRB also withdrew an appeal of the court’s decision vacating the 2023 Joint Employer Rule in its entirety as illegal.
What’s next: The case in the D.C. Circuit was the last pending challenge to the 2023 Joint Employer Rule and with its dismissal, all litigation pertaining to the now permanently vacated 2023 Joint Employer Rule is complete.
What we're saying: “This is a hard-fought victory for restaurant owners, our members, the Association, the Restaurant Law Center, and the coalition of business organizations we stood with against this rule. After almost two years of fighting the NLRB’s flawed 2023 Joint Employer Rule, the long-established ‘direct and immediate’ joint employer standard will return, providing clear and stable guidance for foodservice employers and employees. The confusion brought about by the 2023 Rule is gone, and now restaurant owners can confidently focus on growing their businesses and serving their communities.” – Michelle Korsmo, President & CEO, National Restaurant Association
