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B-331913 1 (2020-03-11)

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GAO U.S. GOVERNMENT ACCOUNTABILITY OFFICE
441 G St. N.W.
Washington, DC 20548


B-331913


March 11, 2020

The Honorable Lamar Alexander
Chairman
The Honorable Patty Murray
Ranking Member
Committee on Health, Education, Labor, and Pensions
United States Senate

The Honorable Robert C. Bobby Scott
Chairman
The Honorable Virginia Foxx
Ranking Member
Committee on Education and Labor
House  of Representatives

Subject: National Labor Relations Board: Joint Employer Status Under the National Labor
        Relations Act

Pursuant to section 801 (a)(2)(A) of title 5, United States Code, this is our report on a major rule
promulgated by the National Labor Relations Board (NLRB) entitled Joint Employer Status
Under the National Labor Relations Act (RIN: 3142-AA13). We received the rule on
February 26, 2020. It was published in the Federal Register as a final rule on February 26,
2020. 85 Fed. Reg. 11184. The stated effective date of the rule is April 27, 2020.

NLRB  issued this final rule for the purpose of carrying out the provisions of the National Labor
Relations Act (NLRA) by establishing the standard for determining whether two employers, as
defined in section 2(2) of the Act, are a joint employer under NLRA. 29 U.S.C. §§ 151-169.
According to NLRB, this rulemaking will foster predictability and consistency regarding
determinations of joint-employer status in a variety of business relationships, thereby enhancing
labor-management  stability, the promotion of which is one of the principal purposes of the Act.
Under this final rule, an entity may be considered a joint employer of a separate employer's
employees only if the two share or codetermine the employees' essential terms and conditions
of employment, which are exclusively defined as wages, benefits, hours of work, hiring,
discharge, discipline, supervision, and direction. More specifically, according to NLRB, to be
deemed  a joint employer under this final rule, an entity must possess and actually exercise
substantial direct and immediate control over essential terms and conditions of employment of
another employer's employees.

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