Microsoft to Fight NLRB Ruling on Joint Employers

By: Daniel Steingold | June 16, 2016

Microsoft has decided to fight a ruling made last August by the National Labor Relations Board (NLRB).

The ruling, which essentially suggests that companies must extend certain benefits and responsibilities to contract employees in addition to standard employees, affects what are termed “joint employers.”

For many larger firms, contracting with a hiring agency to handle the details and complexities of hiring for certain positions is a viable option.

Microsoft has taken their fight to the U.S. Court of Appeals in Washington D.C., hoping that they can reverse the verdict that the company that hires the contractor has “direct and immediate” control over the contractor company’s employees and the details of the employees’ working conditions.

Microsoft has been vocal in their belief that the ruling is much too broad, which would allow collective bargaining on the part of the contractor’s employees, possibly leading to a strike.

They have particularly complained that the ruling could curtail their use of contracting firms, as their current Corporate Social Responsibility policy of only hiring contracting firms that give their employees at least 15 days of paid leave would entail making them more legally responsible as a joint employer.

Other organizations filing briefs along with or for Microsoft include the Chamber of Commerce, the National Association of Manufacturers, and the National Retail Federation.

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