Employment Law & Compliance Highlights from the Law Offices of Paul P. Cheng
– FEDERAL –
NLRB Reinstates 2020 Joint Employer Standard
The National Labor Relations Board (NLRB) has officially moved to reinstate the 2020 Joint Employer Rule, signaling a significant shift in federal labor policy that directly impacts businesses with shared workforce arrangements.
On February 27, 2026, the NLRB published a final rule restoring the 2020 standard after a period of regulatory uncertainty. This follows a key decision in Chamber of Commerce v. NLRB, where a U.S. District Court vacated the 2023 Biden-era rule on March 8, 2024.
What This Means for Employers
Under the reinstated 2020 rule, joint employer status is narrowly defined. Two separate entities will only be considered joint employers if they:
- Possess and exercise substantial direct and immediate control
- Over essential terms and conditions of employment, such as hiring, firing, discipline, supervision, and wages
This standard is generally more favorable to businesses compared to the broader 2023 rule, which would have expanded liability based on indirect or reserved control.
Why It Matters
For employers, particularly those using:
- Staffing agencies
- Franchising models
- Subcontracting relationships
this change reduces exposure to:
- Collective bargaining obligations
- Unfair labor practice claims under the National Labor Relations Act
However, companies should still carefully evaluate their operational structures to ensure compliance, as misclassification of joint employer relationships can still trigger costly litigation and regulatory scrutiny.
U.S. Department of Labor Launches Center for Faith Resources
The U.S. Department of Labor (DOL) announced on March 19, 2026, the launch of a new online platform for its Center for Faith, following a federal initiative to strengthen protections for religious liberty in the workplace.
This initiative stems from an executive action establishing a White House Faith Office and corresponding agency-level programs.
Key Features of the New Resource
The Center for Faith website provides:
- Guidance for employees facing religious discrimination, including issues involving:
- Christian bias
- Anti-Semitism
- Compliance resources for employers and faith-based organizations
- An interactive nationwide map outlining:
- State-specific workplace protections
- Instructions for filing religious discrimination complaints
Employer Takeaways
Employers should take this opportunity to:
- Review and update anti-discrimination and accommodation policies
- Ensure compliance with federal protections under laws such as Title VII of the Civil Rights Act of 1964
- Provide training on religious accommodations and workplace inclusivity
With increased federal attention on religious discrimination, proactive compliance is critical to mitigating risk and fostering a respectful workplace environment.
How Our Firm Can Help
At the Law Offices of Paul P. Cheng, APC, we advise both employers and employees on navigating complex and evolving employment laws. Whether you are reassessing joint employer risks or updating workplace policies, our litigation-tested team is prepared to protect your interests.
If you have questions about how these federal updates impact your business, we welcome you to contact our office for a consultation.
– CALIFORNIA –
None.
At the Law Offices of Paul P. Cheng & Associates, we counsel businesses on California labor compliance and defense. If you have questions about how these changes affect your operations, contact our office to ensure your policies are updated before January 2026.
These developments highlight the evolving landscape of employment regulations on both federal and state levels. Employers should stay updated and ensure compliance to avoid legal pitfalls and potential penalties. Legal counsel is recommended to navigate any complex changes effectively.
