NLRB Delays Joint-employer

Rule Effective Date to February

Recently, the National Labor

Relations Board (NLRB)

announced it would push the

effective date of the new joint-employer rule to Feb. 26, 2024.

The final rule was published in

the Federal Register on Oct. 27,

2023, and was initially set to

become effective on Dec. 26,

2023. However, the agency has

delayed the effective date by

two months to facilitate the

resolution of legal challenges

regarding the new rule. Notice

of the extension will be

published in the Federal

Register.

The New Joint-employer

Standard

The 2023 joint-employer standard establishes new criteria for determining joint-employer status as applied to labor issues related to the National Labor Relations Act. It will rescind the existing 2020 joint-employer standard and replace it with a more inclusive law, making it easier for employers to be classified as joint employers. Notable changes to the joint-employer standard include the following:

• Clarification of the definition of “essential terms and conditions of employment”

• Identification of the types

of control that are necessary to establish joint-employer status and the types that are irrelevant to the joint-employer inquiry

• Description of the

bargaining obligations of

joint employers

What’s Next

The law is currently facing legal

challenges. A coalition of

businesses sued the NLRB in

federal District Court, alleging

the new joint-employer rule is

unlawful, overly broad, and

contradictory to the common law

definition that limits joint employment to relationships of actual and substantial control of working conditions.

The new joint-employer standard will only be applied to cases filed after the rule becomes effective on Feb. 26,

2024. Employers can prepare for the new rule by familiarizing themselves with the new standard and determining

whether a more inclusive joint-employer standard will reclassify them as joint employers by the amended effective date.

We’ll keep you apprised of any

notable updates.

3 Key Trends Driving

Employer Health Care

Costs in 2024

All signs point to health care

costs continuing to rise in 2024.

This article outlines the three

primary drivers of health care

costs and ways that employers

plan to manage them.

1. Mental Health Challenges

Employees’ mental health needs

for concerns such as depression,

anxiety and substance use disorder undoubtedly rose during the COVID-19 pandemic and continue to linger amid its aftermath. In response, employers are expected to continue to expand access to mental health support and

services, and many plan to provide more options for support and reduce cost barriers to care. Organizations

may also explore manager and

employee training to recognize

mental health issues.

2. Pharmacy Costs

In 2024, pharmacy costs will continue to impact employers significantly. In addition to high-cost drugs, relationships with pharmacy benefits managers (PBMs) are also a key concern for employers. To address rising drug costs, employers may

implement pharmacy management strategies, including prioritizing

transparent PBM practices and

plan design changes to address

costly medications.

3. Cancer Treatment

Preventive screenings were a

critical health care component

disrupted during the pandemic.

As a result, employers are

anticipating more late-stage

cancers among workers. Cancer is

one of the top drivers of health

care costs for most employers. In

response to rising cancer care,

employees may encourage

advanced screening measures and

maintain full coverage of

recommended prevention and

screening services.

Summary

Heightened health care costs are

likely to continue impacting

employers for the foreseeable

future. Looking ahead to 2024,

many employers are focusing on

impacts related to mental health,

medications, cancer and other

drivers of costs, such as growing

health care delivery models.



Contact us for additional

resources.