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NLRB Extends Deadline for Implementation of Joint Employer Rule Following Cassidy Letter


WASHINGTON – Following a letter by U.S. Senator Bill Cassidy, M.D. (R-LA), ranking member of the Senate Health, Education, Labor and Pensions (HELP) Committee, notifying the National Labor Relations Board (NLRB) that they were out of compliance with the Congressional Review Act (CRA) 60-day threshold rule, the NLRB announced today that it will be extending the deadline for the implementation of its final joint employer rule to February 26, 2024. 

The NLRB previously set the implementation date as December 26, 2023, a violation of the CRA which mandates that the implementation of all major federal rules must be delayed 60 days from when they are received by Congress.  

On November 9th, the Government Accountability Office (GAO) determined that the NLRB was in violation of the CRA. 

“By setting the effective date to December 26, the joint employer rule does not meet the Congressional Review Act’s requirement that the 60-day delay take effect,” wrote Dr. Cassidy. “Specifically, GAO determined based on the receipt of the rule by Congress, ‘the final rule does not have the required 60-day delay in its effective date.’” 

Recently, Cassidy joined U.S. Senators Joe Manchin (D-WV), Republican Leader Mitch McConnell (R-KY), along with U.S. Representatives John James (R-MI), Virginia Foxx (R-NC), chairwoman of the House Education and the Workforce Committee, and House Speaker Mike Johnson (R-LA) in introducing a CRA resolution of disapproval to overturn the NLRB’s joint employer rule. 

Read the full letter here or below. 

Dear Chair McFerran:

On October 27, the National Labor Relations Board (NLRB) issued the final rule, Standard for Determining Joint Employer Status. I am concerned the NLRB did not follow applicable federal law in finalizing the effective date for this major regulation.

The Government Accountability Office (GAO) determined on November 9 that the NLRB is in violation of the Congressional Review Act’s required 60-day delay before a major regulation’s effective date. The Federal Register published the NLRB’s joint employer regulation on October 27, the same day the House of Representatives received the rule. However, the Senate did not receive the rule until October 30.

By setting the effective date to December 26, the joint employer rule does not meet the Congressional Review Act’s requirement that the 60-day delay take effect “from the date of publication the Federal Register or receipt of the rule by Congress, whichever is later” (emphasis added). Specifically, GAO determined based on the receipt of the rule by Congress, “the final rule does not have the required 60-day delay in its effective date.”

Since the rule does not meet the 60-day threshold required under the Congressional Review Act (CRA), please detail how the NLRB will rectify this deficiency to ensure full compliance with federal law by November 29, 2023. 

Thank you for your prompt attention to this important matter.

 
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