March 11, 2024

Federal Court Judge Rescinds NLRB’s 2023 Joint Employer Rule

The decision solidifies enforcement of the 2020 Rule
Washington, D.C. – Last week, the United States District Court in the Eastern District of Texas handed down a summary judgement decision, vacating the National Labor Relations Board’s 2023 Joint Employer Rule. The decision also denied the defendants’ motion to transfer the case to the D.C. Circuit Court.

The decision means the Joint Employer Standards reverts to the NLRB’s 2020 Final Rule, which codified a long-established “direct and immediate” joint employer standard and provided clear and stable guidance for foodservice employers and employees.  

“This decision is a decisive win for franchise operators, the restaurant industry, and the Restaurant Law Center,” said Angelo I. Amador, executive director of the Restaurant Law Center. “By rescinding the 2023 Rule and reinstating the 2020 Rule, the court provides the clarity and certainty on how to determine joint employer status that thousands of small business restaurant owners and their employees need. It also restores the independence of entrepreneurship to thousands of franchisees across the country.”

A separate challenge to the 2023 Joint Employer Rule remains in the D.C. Circuit Court and the Senate continues to consider a Congressional Review Act resolution to overturn the 2023 Standard.

About the Restaurant Law Center 

The Restaurant Law Center (Law Center) is an independent public policy organization affiliated with the National Restaurant Association. It was established to enhance the industry’s voice in the judicial and regulatory arena. The Law Center works to protect and advance the restaurant industry and promote pro-business laws and regulations that allow restaurants to continue to grow, create jobs and contribute to a robust American economy. Find more information at