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U.S. labor agency on Monday overturned a recent decision that made it more difficult for companies to be held liable for labor law violations by contractors and franchisees, saying an appointee of President Donald Trump had a conflict of interest.
The National Labor Relations Board said board member William Emanuel, who joined the agency last year, should not have taken part in the decision because it overturned a 2015 board ruling in a separate case involving his former law firm, Littler Mendelson.
Monday's decision reinstates the 2015 ruling, which had been heavily criticized by business groups for expanding the definition of "joint employment" under federal labor law. But it may only be a temporarily setback for companies, as the board is likely to revisit the issue in a future case.
U.S. labor agency on Monday overturned a recent decision that made it more difficult for companies to be held liable for labor law violations by contractors and franchisees, saying an appointee of President Donald Trump had a conflict of interest.
The National Labor Relations Board said board member William Emanuel, who joined the agency last year, should not have taken part in the decision because it overturned a 2015 board ruling in a separate case involving his former law firm, Littler Mendelson.
Monday's decision reinstates the 2015 ruling, which had been heavily criticized by business groups for expanding the definition of "joint employment" under federal labor law. But it may only be a temporarily setback for companies, as the board is likely to revisit the issue in a future case.
