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Federal Agencies to Re-Examine Joint Employer and Independent Contractor Standards

March 3, 2022

The United States Department of Labor (DOL) and the National Labor Relations Board (NLRB) have just announced significant changes to current regulations with respect to their standards for joint employers and independent contractors. Specifically, the DOL has rescinded its proposed regulations for a new joint-employer rule from the previous administration. The NLRB has announced it plans to reexamine its joint-employer standard.



The current standard requires that an entity have “direct and immediate control” over employee terms and conditions of work in order to be considered a joint employer. It is most likely that the NLRB will return to the Obama Administration standard- an entity that exercises only indirect control over another employee can be considered a joint employer. This will allow more employers to, in fact, be considered joint employers.


Similar changes are in store for the independent contractor standard. The DOL has already rescinded its proposed regulations for a new independent contractor standard from the previous administration but has not determined whether it will make a new rule just yet. The NLRB, on the other hand, will address this issue soon.


Employers should be mindful of how these developments and potential changes in existing standards may impact their workforce. There are many consequences of this change for small businesses. Notably, if one entity jointly employs the employees of another, they could face liability for violations of the National Labor Relations Act (NLRA) and the Fair Labor Standards Act (FLSA).


If your business has any questions about this topic, or any other general employment issues, please do not hesitate to contact the attorneys at The Royal Law Firm at 413-586-2288.

February 19, 2025
The Massachusetts Superior Court found that Massachusetts’ wiretap statue does not bar employers from using allegedly illegally obtained recordings in civil proceedings. In a recent case, an employee claimed she was forced to resign. Plaintiff’s coworker recorded an argument between the Plaintiff and her supervisor without her consent and shared it with supervisors. The employee then sued for discrimination and retaliation, along with two counts for violation of the wiretap statute. Massachusetts is a two-party consent state but, in this case, it was found that the consent of only one party was needed because nothing in the Wiretap Statute bars the use of an allegedly illegally obtained communication in a civil proceeding. The court found that the provisions about the use of illegally obtained communications in evidence are limited to criminal trials. However, depending on the court, results may differ, as this recording was central to proving and/or disproving the Plaintiff’s claim, and as such, the recording was indispensable as a piece of evidence. Issues with unauthorized recordings have been arising all the time in civil proceedings because recording devices are everywhere, whether they be a cell phone, laptop or other recording device. This ruling is good for employers, as if there is an otherwise inadmissible recording that is made that disproves an employee’s claims, it can be admissible as evidence if meets the same scenario above. However, employers must be careful to use these recordings as they may be inadmissible and may not show the same thing that the employer believes in the court’s eyes. This being said, it is prudent to consult an attorney before utilizing a recording for any employment action or in legal action to avoid unwanted consequences. If your business has any questions on this topic or any other matters, please do not hesitate to contact the attorneys at The Royal Law Firm at 413-586-2288.
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