In a move welcomed by employers nationwide, a federal court judge in Texas has vacated the National Labor Relations Board’s proposed joint employer rule.

Copyright: mipan / 123RF Stock Photo

The decision, handed down late on March 8, 2024, by Judge J. Campbell Barker of the Eastern District of Texas, means that the more employer-friendly standard the Board implemented in the waning days of the Trump administration, which requires a showing of “immediate and direct control,” will continue to apply for the foreseeable future.

Judge Barker’s decision, which called the proposed joint employer standard “a sweep beyond common law limits,” is a major setback for the National Labor Relations Board’s agenda to expand its jurisdictional footprint.

Our colleagues Robert Nagle and Joel White have more to say about Judge Barker’s decision in a Fox Rothschild Alert.