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The National Labor Relations Board has dropped its appeal of a Texas judge’s March ruling that vacated its “joint employer” rule (Law360, subscription).

What’s going on: In an unopposed motion last Friday, the NLRB said “it wants to consider its approach to the policy in light of the court’s decision. … bring[ing] to a close litigation over a regulation the board finalized last year that made it more likely it would find two linked entities jointly employ the same group of workers.”

• Under the rule, which the NLRB issued last fall, companies would be considered “joint employers” of contract and franchise workers if the companies can control certain working conditions, including pay, schedule and supervision—even if that control is indirect or goes unused.
• “[T]he NLRB said it would like the chance to consider its policy consistent with U.S. District Judge J. Campbell Barker’s March decision striking down the rule, as well as in light of petitions for rulemaking it has received that raise the issue.”
• Last November, business groups sued the agency and called on the court to stop the rule’s enforcement.

Why it’s important: As written, the rule could make it difficult for manufacturers to bring on temporary workers, potentially creating “new disruptions in the workplace” and worsening “manufacturers’ ability to respond to changing market demands,” the NAM told the NLRB in 2022.