Akin Secures Major Win for Businesses Nationwide Against NLRB’s Attempt to Expand “Joint Employer” Liability

(Washington, D.C.) – Akin has secured a major victory on behalf of the U.S. Chamber of Commerce and a coalition of business groups challenging a new National Labor Relations Board (NLRB) rule that threatened to dramatically expand “joint employer” liability under the National Labor Relations Act.

On March 8, the U.S. District Court for the Eastern District of Texas granted summary judgment to Akin clients, setting aside the NLRB’s proposed rule just three days before it was set to go into effect.

Agreeing with Akin’s arguments, the court held that the NLRB’s new rule “exceeds the bounds of the common law and is thus contrary to law,” vacating it and the Board’s recission of its prior joint employer rule. This ruling benefits Akin’s clients and businesses nationwide spanning a wide range of industries throughout the U.S. economy—all of which faced uncertainty, disruption and billions of dollars in costs and potential liability from the new rule governing workplace relationships that they do not control. 

To read the court’s ruling, please click here. This major victory has received significant media coverage, including by The New York Times, POLITICO, Reuters, Bloomberg Law, The National Law Journal and Law360 (subscription required).

Akin Supreme Court & appellate practice head Pratik Shah led the team and argued the successful motion for summary judgment. He was joined by fellow partner James Tysse, labor & employment counsel James Crowley and Supreme Court & appellate associate Margo Rusconi. Additional support was provided by partners Laura Warrick and Dan Nash and senior paralegal specialists Christine Patton and Adria Hicks.

Akin is a leading international law firm with more than 900 lawyers in offices throughout the United States, Europe, Asia and the Middle East.

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