NLRB Reinstates 2020 Joint Employer Test, Requiring Substantial Direct Control
Updated
Updated · The National Law Review · Jun 9
NLRB Reinstates 2020 Joint Employer Test, Requiring Substantial Direct Control
1 articles · Updated · The National Law Review · Jun 9
Summary
February 27, 2026 marked the return of the NLRB’s narrower joint-employer standard, limiting liability to entities that possess or exercise substantial direct and immediate control over essential employment terms.
Eight categories now anchor that test: wages, benefits, hours, hiring, discharge, discipline, supervision and direction; sporadic, isolated or de minimis control does not qualify.
The rollback followed a March 8, 2024 Texas federal court ruling that struck down the Biden-era 2023 rule before it took effect, after finding it blurred the line between an employer and a contractual partner.
April 30, 2026 gave the new rule an early application when the Board ruled PeaceHealth was not a joint employer, saying its interview role, credentialing demands and work oversight did not amount to direct control.
The shift applies under the NLRA only, while the Labor Department separately proposed on April 23, 2026 updating joint-employer standards under other workplace laws.