NLRB Rescinds Joint Employer Rule in Win for NDA

March 03, 2026

Last week, the National Labor Relations Board (NLRB) formally rescinded the 2023 joint employer final rule, which had been vacated by the U.S. District Court for the Eastern District of Texas in March 2024. The board’s action reinstates the 2020 joint employer rule, a standard supported by NDA. 

Under the reinstated rule, the board returns to the traditional framework for joint employer liability. An entity may be deemed a joint employer of another company’s workers only if it possesses and exercises substantial direct and immediate control over one or more essential terms or conditions of employment, such that it meaningfully affects matters relating to the employment relationship. 

Benefits for demolition contractors:

• Greater predictability: Joint employer status will require substantial direct and immediate control over essential employment terms.
• Lower liability exposure: Decreased risk of unintended liability for contractors
• Protection of subcontracting model: Preserves operational independence between prime contractors and subcontractors.
• Contract clarity: Quality control, safety oversight, and compliance provisions are less likely to trigger joint employer status.
• Worksite stability: Routine coordination on multiemployer worksites is less likely to create unintended joint employer liability.