Workers who are employed by vendors that large companies hire could try to hold those big names accountable for labor violations – if this rule proposed by the National Labor Relations Board takes effect.
When a McDonald’s worker has a beef with their boss, complaining to McDonald’s Corp. won’t help. When an employee at Google has a problem, they likely can’t seek out a Google manager — their manager usually works for a vendor hired by the tech giant.
In changing the standard by which companies would be considered “joint employers” that deal with direct as well as indirect employees, the proposed regulations could affect large companies that outsource liability by hiring vendors and subcontractors or adopting the franchise model. Workers who are not directly employed by those companies could then try to hold them accountable for labor violations.
Logan also said that if the NLRB does change the rule, he foresees court challenges by big companies.
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