US labor board delays new employment rule after business groups sue

Starbucks workers and union supporters march the picket line in the parking lot of the Jonesboro location during the "Red Cup Rebellion" strike action on Thursday, November 16, 2023. (Matthew Pearson/WABE)

The federal government is delaying a new rule that could make it easier for millions of workers to unionize after business groups challenged it in court.

The National Labor Relations Board said Thursday that the rule — which was scheduled to go into effect in December — will now be effective Feb. 26. The board said the delay will give it time to resolve legal challenges.

The rule sets new standards for determining when two companies should be considered “joint employers” in labor negotiations. Under the current NLRB rule, which was passed by a Republican-dominated board in 2020, a company like McDonald’s isn’t considered a joint employer of most of its workers since they are directly employed by franchisees.