A federal judge appointed by former President Donald Trump has ruled against a new federal rule that would have made it easier for fast-food and other workers to organize by holding big companies accountable for unfair labor practices involving their franchisees or subcontractors.
U.S. District Judge J. Campbell Barker of the Eastern District of Texas issued an order vacating the National Labor Relations Board’s “joint-employer” rule, stating that the agency had overstepped its authority in issuing it.
This ruling is a significant win for business lobbies and a setback for labor advocates and the Democratic majority at the NLRB, who had prioritized the rule.
The joint-employer rule was designed to address the issue of whether large companies like McDonald’s should be considered joint employers with their franchisees or subcontractors.
Labor advocates argue that these arrangements allow big companies to avoid their obligations to workers. The NLRB’s rule would have made it easier for workers to argue that companies like McDonald’s are responsible for setting working conditions, not just the franchisees.
NLRB Chair Lauren McFerran, an appointee of President Joe Biden, expressed disappointment in the court’s decision but stated that the agency is reviewing the ruling and considering its next steps.
The decision highlights the ongoing debate over labor practices and the role of large corporations in ensuring fair treatment of workers.
