On August 27, 2015 the National Labor Relations Board handed down it’s ruling in the Browning-Ferris Industries case. In its decision, the NLRB determined that Browning-Ferris (BFI) should be considered a joint employer with its contractor, Phoenix-based staffing agency Leadpoint Business Services. With this decision, the labor board basically redefined what it means to be an employer.

It may not seem to be a major decision on the surface, but as a result of this decision the company (BFI) could be pulled into collective bargaining negotiations plus be held liable for any labor violations committed against these contract employees. It opens up a virtual Pandora’s Box regarding joint employer status with “temp” employees.

This ruling is will have an impact on Browning–Ferris, but also is likely to affect any employer who utilizes “temp” or contract employees. This will include manufacturers, restaurants, retailers, hotels, cleaning services, construction firms, security services and, obviously, staffing agencies. Any company who currently utilizes the services of temporary staffing agencies is at risk. Temporary staffing agencies now face the challenge of losing business from client companies who don’t want to be legally responsible for another company’s employees.

Phil Rasnick, of PML Programs has provided permission for use of this article.