US Labor Board Moves to Ease Companies’ Liability for Contractor, Franchisee Violations

US Labor Board Moves to Ease Companies’ Liability for Contractor, Franchisee Violations
A worker sits at his desk in an office building in Washington on Aug. 3, 2018. Brian Snyder/Reuters
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The U.S. agency that enforces federal labor law on Sept. 13 took the first steps toward loosening an Obama-era standard that made it easier to hold companies liable for illegal labor practices by their contractors and franchisees.

The five-member National Labor Relations Board, whose majority was appointed by President Donald Trump, proposed a rule that would restore an earlier standard. Under it, companies were considered to be so-called joint employers with their contractors or franchisees only when they exercised direct control over labor issues such as hiring and firing workers and setting wages.