Argentum has announced its support of the June 7 decision by the U.S. Department of Labor to withdraw its administrative interpretation regarding joint employment.
“Argentum is pleased that Secretary Acosta has taken this important step that we hope will ultimately return the joint employer standard to its longstanding standard that existed for over thirty years prior to the National Labor Relations Board’s damaging revision decision in 2015,” said James Balda, Argentum president & chief executive officer.
From 1984-2015, the National Labor Relations Board (NLRB) considered two entities to be joint employers only if both exercised direct and immediate control over the essential terms and conditions of employment for a group of employees; this included having the ability to hire, fire, discipline, supervise or direct the employees. Joint employers are responsible for bargaining with any union representing the joint employees and are mutually liable for any violations of the National Labor Relations Act either entity commits with respect to those employees.
In 2015, the National Labor Relations Board (NLRB) in its Browning-Ferris Industries of California decision substantially expanded the definition of joint employers to include employers with indirect or even the unexercised potential of control which could potentially include every contractual business relationship nationwide.
“Although this decision was initially considered to only pertain to businesses with franchise type of relationships, the ambiguity of the definition has led Argentum to oppose the current expanded joint employer standard in order to protect our senior living businesses from increased liabilities under the expanded standard,” Balda added.
Argentum, through its participation on business coalitions including the Coalition for A Democratic Workplace, the Coalition to Save Local Business and the U.S. Chamber of Commerce will continue to pursue legislation that will permanently restore the long-standing joint employer standard that existed from 1984-2015.
Argentum is the leading national association exclusively dedicated to supporting companies operating professionally managed, resident-centered senior living communities and the older adults and families they serve. Argentum member companies operate senior living communities offering assisted living, independent living, continuing care, and memory care services to older adults and their families. Since 1990, Argentum has advocated for choice, independence, dignity, and quality of life for all older adults. Learn more at argentum.org.
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