The National Labor Relations Board Monday withdrew a December decision overturning an Obama-era ruling that would’ve made it easier for contractors and workers at franchised businesses to form unions and collectively bargain.
The board’s ethics officer determined that William Emanuel, a Republican nominated by President Donald Trump to the NRLB last year, should’ve been disqualified because his former law firm represented Leadpoint, a staffing services firm that was party to the overturned 2015 case, The Wall Street Journal reported.
The board was controlled by Democrats in 2015 when it found Leadpoint workers at a recycling center in California were effectively employees of Browning-Ferris Industries, the waste-management company that hired the staffing firm, the Journal reported. The ruling made it possible for Leadpoint workers to unionize and bargain with Browning-Ferris.
The case was thought to have implications for McDonald’s, Subway and other brands with franchised locations, the Journal reported.
The implications of Monday’s move are unclear, however; the Journal reported the GOP-controlled NLRB could choose not to enforce the older ruling.
The International Franchise Association has called on Congress to pass a law to clarify the joint-employment standard, The Hill reported.
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