U.S. District Court for the Eastern District of Texas

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U.S. Chamber Sues National Labor Relations Board Over New Rule Forcing Joint Employment Relationship U.S. Chamber Wins Case over NLRB's Unlawful Joint Employer Rule

Case Updates

NLRB files notice of appeal challenging vacatur of the National Labor Relations Board’s 2023 Joint Employer Rule

May 07, 2024

Notice of Appeal

Eastern District of Texas issues order vacating the National Labor Relations Board’s 2023 Joint Employer Rule as contrary to law, and vacating the rescission of the 2020 Joint Employer Rule as arbitrary and capricious

March 08, 2024

Opinion and Order

NLRB votes to delay the effective date of the Joint Employer Rule to February 26, 2024

November 16, 2023

Defendants' Notice Regarding Extension of Effective Date of Final Rule

U.S. Chamber moves for summary judgment in challenge to National Labor Relations Board joint employer rule

November 13, 2023

Motion for Summary Judgment

U.S. Chamber files coalition lawsuit challenging the National Labor Relations Board’s Joint Employer Rule as statutorily unauthorized and arbitrary and capricious

November 09, 2023

The Chamber and a coalition of business groups sued the National Labor Relations Board over its new joint employer rule. Joint employment is where two or more employers control the essential terms and conditions of employment for the same employees. The rule makes it easier for the NLRB to declare joint employment status exists in business relationships where it traditionally doesn’t, like franchising, contracting, and supply chains.

Why it matters: Many businesses will find themselves liable for workers they don’t employ at workplaces they don’t own or control.


Employers’ liability would be broadened, and unions would be able to organize across companies rather than store by store.

Businesses of all sizes would be affected. An expanded joint employer rule, in place from 2015 to 2017, cost franchise businesses – a majority of which are small businesses – $33 billion per year, according to the International Franchise Association. That resulted in 376,000 lost job opportunities and led to 93% more lawsuits against these businesses.

Our take: “The NLRB’s new joint employer rule is the latest in a string of actions to promote unionization at all costs, even when harmful to workers, employers, and our economy,” said Glenn Spencer, senior vice president of the Chamber’s Employment Policy Division. “The NLRB has been overturning numerous precedents at the behest of labor unions, so the Chamber is suing to rein in this out-of-control agency.”

Pratik A. Shah, James E. Tysse, James C. Crowley, and Margaret O. Rusconi of Akin Gump Strauss Hauer & Feld LLP and the U.S. Chamber Litigation Center served as co-counsel for the Chamber.

Case Documents