By: Rachael Jeanfreau and Kenneth Nilsson
Many employers, including tech companies such as Google, rely on third-party staffing agencies to help run daily operations. The constant friction created by this practice is whether these workers are only employees of the staffing agency, or are they also jointly employed by the other business, in this case Google? Joint employer status is important, as it can result in liability for the joint employer under many labor and employment laws, including the National Labor Relations Act.
In earlier proceedings before the National Labor Relations Board (NLRB), the Board determined that Google is a joint employer of the employees of its contractor, Accenture Flex. Thus, as a joint employer, Google was required to bargain with the union representing Accenture employees, the Alphabet Workers Union (AWU). The NLRB also determined that since October 2024, Google illegally failed to negotiate with the AWU, and the Board ordered Google to bargain.
Google will seek to appeal in Federal court the NLRB’s decision on Google’s refusal to bargain with the AWU, which will indirectly allow Google also to challenge the NLRB’s underlying certification of the AWU’s election and the Board’s decision that Google is a joint employer. Currently, union certifications are not directly appealable by employers, but by appealing the Board’s decision on Google’s refusal to bargain, Google can now force these underlying issues into federal court. Although the NLRB maintains that the question of Google’s joint employer status has already been litigated and decided by the Board, Google has set its eyes on judicially overturning that decision.
For any business using a staffing agency, it is crucial to consult with labor and employment counsel to analyze the risks of possible joint employer status under labor and employment laws, including the National Labor Relations Act, the wage and hour rules, and other laws.
BSW Labor and Employment Law Blog 