A federal judge in Texas has blocked a new rule by the National Labor Relations Board that would have made it easier for millions of workers to form unions at big companies. The rule, which was due to go into effect Monday, would have set new standards for determining when two companies should be considered 'joint employers' in labor negotiations.
Chamber of Commerce and other business groups - including the American Hotel and Lodging Association, the International Franchise Association and the National Retail Federation - sued the NLRB in federal court in the Eastern District of Texas in November to block the rule. They argued the new rule would upend years of precedent and could make companies liable for workers they don't employ at workplaces they don't own.