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B-335701 Nov 09, 2023 1 (2023-11-09)

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


B-335701


November  9, 2023

The Honorable  Bernard Sanders
Chairman
The Honorable  Bill Cassidy
Ranking  Member
Committee  on Health, Education, Labor, and Pensions
United States Senate

The Honorable  Virginia Foxx
Chairwoman
The Honorable  Bobby Scott
Ranking  Member
Committee  on Education and the Workforce
House  of Representatives

Subject: National Labor Relations Board: Standard for Determining Joint Employer Status

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) titled Standard for Determining
Joint Employer Status (RIN: 3142-AA21). We received the rule on October 27, 2023. It was
published in the Federal Register as a final rule on October 27, 2023. 88 Fed. Reg. 73946.
The stated effective date is December 26, 2023.

According to NLRB, it has decided to issue this final rule for the purpose of carrying out the
National Labor Relations Act (NLRA or Act) by rescinding and replacing the final rule titled
Joint Employer Status Under the National Labor Relations Act, which was published on
February 26, 2020, and took effect on April 27, 2020. NLRA, ch. 372, 49 Stat. 449
(July 5, 1935); 85 Fed. Reg. 11184 (Feb. 26, 2020). NLRB stated that the final rule establishes
a new standard for determining whether two employers, as defined in the Act, are joint
employers of particular employees within the meaning of the Act. NLRB also stated that it
believes that this rule will more explicitly ground the joint-employer standard in established
common-law   agency principles and provide guidance to parties covered by the Act regarding
their rights and responsibilities when more than one statutory employer possesses the authority
to control or exercises the power to control particular employees' essential terms and conditions
of employment.  NLRB  stated further that under the final rule, an entity may be considered a
joint employer of another employer's employees if the two share or codetermine the employees'
essential terms and conditions of employment.

The Congressional Review  Act (CRA) requires a 60-day delay in the effective date of a major
rule from the date of publication in the Federal Register or receipt of the rule by Congress,
whichever is later. 5 U.S.C. § 801(a)(3)(A). The final rule was published in the Federal Register
on October 27, 2023. 88 Fed. Reg. 73946. The House  of Representatives received the rule on
October 27, 2023. 169 Cong. Rec. H5179  (daily ed. Oct. 30, 2023). The Senate received the

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