Employer Branding vs. Corporate Branding
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Understanding the nlrb joint employer rule october 2025 news
What is the NLRB Joint Employer Rule?
The National Labor Relations Board (NLRB) has issued a new final rule on joint employer status, set to take effect in October 2025. This rule redefines how businesses, including small businesses and franchisors, are classified as joint employers under the National Labor Relations Act. The core of the rule is about when two or more employers share control over essential terms and conditions of employment, such as wages, benefits, scheduling, and supervision.
Key Changes in the Definition of Joint Employer
The new standard broadens the definition of joint employment compared to the previous rule set by the Trump administration. Now, a business can be considered a joint employer if it has the authority to control, either directly or indirectly, one or more essential terms and conditions of employment—even if that control is not exercised on a regular basis. This includes both substantial direct control and reserved control over employees’ protected activity and working conditions.
- Essential terms: Includes wages, benefits, hours, hiring, discharge, discipline, supervision, and direction.
- Control: Not limited to direct control; indirect or potential control also matters.
- Joint employers: Both parties may be held responsible for labor relations and collective bargaining.
Why This Matters for Employers
For employers, especially small businesses and those in franchise models, the final rule means increased scrutiny over business relationships and employment practices. The board’s new approach could impact how companies structure contracts and manage their workforce, as joint employer status brings new legal and reputational risks. Understanding the implications of this rule is crucial for maintaining compliance and protecting your employer brand.
For a deeper dive into how leadership and influence shape employer branding in this evolving regulatory landscape, check out this resource on leadership’s influence in employer branding.
How joint employer status affects your employer brand
Impact on Perceptions of Control and Responsibility
The new NLRB joint employer rule redefines how control over essential terms and conditions of employment is assessed. Under the final rule, businesses can be considered joint employers if they have substantial direct or indirect control over another employer’s employees. This shift in the employer standard means that both franchisors and companies using staffing agencies may now share responsibility for labor relations and employment practices.
For employer branding, this change can alter how current and prospective employees view your business. When employees see that a company is accountable for workplace conditions—even if those employees are technically employed by another entity—it can influence trust and loyalty. The definition of joint employment now extends to more businesses, including small businesses and franchises, increasing the importance of transparent communication about who is responsible for workplace standards and protected activity.
Reputation Risks and Opportunities
Being classified as a joint employer brings both risks and opportunities for your brand. On one hand, greater control over essential terms can enhance your reputation as a responsible employer, especially if you uphold high standards for all workers under your influence. On the other hand, any negative labor activity or disputes—such as those related to wages, safety, or union organizing—can now reflect directly on your business, even if you are not the primary employer.
- Small businesses and franchisors may face new scrutiny from the public and potential hires regarding their labor practices.
- Employees may expect more from businesses that meet the joint employer definition, especially in terms of fair treatment and access to protected activity.
- Employers must be proactive in managing their reputation, as the board’s standard now holds them accountable for the actions of their partners and contractors.
Shaping Employer Brand Narratives
The final rule challenges businesses to clarify their role in the employment relationship. Clear messaging about your company’s commitment to fair labor practices and compliance with national labor standards can help reinforce a positive employer brand. This is particularly important for organizations navigating the complexities of joint employment, as ambiguity can lead to confusion and mistrust among employees.
For more insights on how leadership approaches influence employer branding, explore this resource on the real difference between a leader and a manager in employer branding.
Key Considerations for Employer Status
| Aspect | Implication for Employer Branding |
|---|---|
| Control over essential terms | Signals responsibility and influence over workplace culture |
| Joint employer status | May require updates to messaging about employment standards |
| Labor relations | Directly impacts reputation in the eyes of employees and the public |
| Compliance with the final rule | Demonstrates commitment to legal and ethical standards |
Communicating changes to your workforce
Building trust through transparent communication
When the National Labor Relations Board (NLRB) updates the joint employer rule, it can create uncertainty for employees. The new definition of joint employment, which focuses on substantial direct or indirect control over essential terms and conditions of employment, means that both franchisors and small businesses may be considered joint employers. This can affect labor relations, employee rights, and the perception of your business as an employer. Clear and timely communication is essential. Employees want to know how the final rule impacts their day-to-day work, who is responsible for their terms and conditions, and what the business is doing to protect their interests. Here are some practical steps:- Host information sessions to explain the joint employer standard and what it means for your workforce.
- Share regular updates on how the business is adapting to the new employer rule, especially if you are a small business or part of a franchise network.
- Provide accessible resources that clarify the essential terms of employment, such as pay, scheduling, and workplace policies.
- Encourage questions and feedback, creating a two-way dialogue to address concerns about joint employment and labor relations.
- Reassure employees that their rights to protected activity under national labor law remain intact, regardless of changes in employer status.
Adapting your employer branding strategy
Refreshing Your Value Proposition
The final NLRB joint employer rule requires employers to rethink how they present their value proposition to both current and prospective employees. With the expanded definition of joint employment, businesses—especially small businesses and franchisors—must clarify what makes their workplace unique, even when control over essential terms and conditions of employment is shared or indirect. This means being transparent about the roles of different employers in the employment relationship and how this impacts the employee experience.
Aligning Messaging with the New Standard
Consistency is key when adapting your employer branding strategy. The new joint employer standard emphasizes the importance of substantial direct or indirect control over essential terms and conditions of employment. Your messaging should reflect how your business ensures fair labor relations and protects employees' rights, regardless of changes in employer status. This is particularly important for small businesses and franchisors, who may now be considered joint employers under the board's rule.
- Highlight your commitment to compliance with national labor standards and the NLRB's final rule.
- Communicate how your business supports protected activity and fair employment practices.
- Showcase how you maintain a positive workplace culture, even when multiple employers are involved in managing employees.
Revisiting Employer-Employee Touchpoints
Every interaction between your business and its employees is an opportunity to reinforce your employer brand. With the new rule, review all touchpoints—onboarding, training, performance management, and communication about terms and conditions of employment. Ensure that messaging is clear about who holds control over essential terms, and how joint employment may impact day-to-day activity and long-term career growth.
Monitoring and Responding to Feedback
The joint employer rule may create uncertainty among employees, especially in sectors with complex employment structures. Regularly gather feedback from your workforce to understand their concerns about the new standard and adjust your employer branding strategy accordingly. This proactive approach helps build trust and demonstrates your commitment to transparency and employee well-being.
Legal and compliance considerations for HR teams
Key compliance steps for HR teams
The National Labor Relations Board (NLRB) final rule on joint employer status introduces a more expansive definition of what it means to be a joint employer. For HR teams, this means a renewed focus on compliance and risk management. The rule clarifies that businesses may be considered joint employers if they share or codetermine essential terms and conditions of employment, such as wages, benefits, and workplace safety. This applies even if the control is indirect or reserved, not just exercised directly.- Review contracts and policies: Examine agreements with staffing agencies, contractors, and franchisors to identify any language that could imply substantial direct or indirect control over essential terms of employment.
- Audit employment practices: Assess how your business interacts with other employers and third parties. Pay attention to areas where your company might influence another employer’s decisions regarding employees’ terms and conditions.
- Update training: Ensure HR and management teams understand the new employer standard and the risks of joint employment. Training should cover the expanded definition of joint employer and the implications for labor relations.
- Document decision-making: Keep clear records of who controls essential terms and conditions of employment. This documentation will be crucial if the board investigates your business’s employer status.
Implications for small businesses and franchisors
Small businesses and franchisors are particularly affected by the final rule. The broadened standard means that even limited or potential control over another employer’s employees could result in joint employer status. This increases the risk of being held liable for labor law violations and participating in collective bargaining.| Area of Impact | Compliance Action |
|---|---|
| Franchise agreements | Limit franchisor involvement in day-to-day employment decisions |
| Staffing relationships | Clarify which party controls essential terms and conditions |
| Protected activity | Ensure policies do not restrict employees’ rights under national labor law |
Staying ahead of regulatory changes
The joint employer rule is subject to ongoing legal challenges, including in federal circuit courts. HR teams should monitor updates from the NLRB and legal developments that may affect the definition of joint employer. Proactive compliance will help protect your business, maintain a positive employer brand, and support strong labor relations. For further guidance, consult with legal counsel specializing in labor and employment law to ensure your business remains compliant with the evolving employer rule landscape.Case studies: employer branding responses to regulatory shifts
Real-World Employer Branding Responses to Regulatory Change
The introduction of the new NLRB joint employer rule has prompted a variety of responses from organizations across industries. These case studies highlight how different businesses, from large franchisors to small businesses, have adapted their employer branding strategies to align with the evolving definition of joint employment and the board's final rule.- Franchisors and Franchisees: Many franchisors have taken proactive steps to clarify the boundaries of control over essential terms and conditions of employment. By revising franchise agreements and providing clearer guidance on labor relations, these organizations aim to reduce the risk of being classified as joint employers. This approach not only addresses compliance but also reassures employees about the stability of their employment terms, supporting a more positive employer brand.
- Small Businesses: Small businesses, often concerned about the impact of the joint employer standard, have focused on transparent communication with employees regarding changes in employment structure. Some have invested in training for managers to ensure that direct control over essential terms is well documented and compliant with the new rule. This transparency helps maintain trust and reinforces the business’s commitment to fair labor practices.
- Multi-Location Employers: Organizations operating across multiple sites have implemented centralized HR policies to ensure consistent application of labor standards. By standardizing terms and conditions of employment, these employers can better manage the risk of joint employment status and demonstrate a unified employer brand, even as they adapt to the final rule.
- Labor-Intensive Industries: In sectors where subcontracting and staffing are common, businesses have reviewed their contracts to limit substantial direct and indirect control over non-essential employment activities. This careful delineation of responsibilities helps clarify the employer relationship for both employees and the board, supporting compliance and a clear employer identity.
Lessons Learned from Employer Branding Adjustments
| Business Type | Key Response | Employer Branding Impact |
|---|---|---|
| Franchisor | Clarified control over essential terms | Increased employee confidence in employment stability |
| Small Business | Enhanced communication and compliance training | Strengthened trust and labor relations |
| Multi-Location Employer | Standardized HR policies | Consistent employer brand across locations |
| Labor-Intensive Industry | Reviewed contracts to clarify control | Clearer employer identity and reduced legal risk |
