End of Franchises In America? Union wins closely watched labor case over who's the boss

Crain's Chicago Business reports:

More companies may be held responsible for labor-law violations committed by the contractors they hire under a decision by a politically split U.S. labor board in a closely watched case.

The National Labor Relations Board on Thursday unveiled a new standard that also could require more businesses to negotiate pay and benefits for workers employed by another company. Previously, employers had to have direct control over working conditions to be deemed so-called joint employers.

That standard no longer fits in “the current economic landscape,” the board's three Democrats wrote. They noted that almost 2.9 million Americans had jobs through temporary agencies a year ago, or 2 percent of the workforce, up from 1.1 million in 1990.

Under the ruling by the five-member board, companies that exert indirect control over workers through employment contracts or franchise agreements may be deemed joint employers.

The case, involving Browning-Ferris Industries Inc. and a union at one of its contractors, drew attention from labor, businesses and Republicans in Congress, who vow to try to block the panel's decision.

Decades of labor law out the window.