The unintended consequence of the National Labor Relations Board’s proposed “joint employer” rule could be a stifling of environmental, social and governance initiatives among corporations. That’s according to the HR Policy Association, which represents human resource officers at large corporations. 

In long-term care, the proposed rule is of special interest to organizations that use temporary or contract workers, as well as operators that are part of franchises. Under the proposed rule announced Sept. 6, two or more employers would be considered joint employers if they share or codetermine an employee’s “essential terms and conditions of employment,” such as compensation, work and scheduling, hiring and discharge, discipline, workplace health and safety, supervision, assignment and work rules.

The HR Policy Association filed one of the 1,724 public comments — including comments from LeadingAge, Argentum, the Home Care Association of America and the Service Employees International Union — posted as of Friday concerning NLRB’s plan to amend its joint employer standard. The deadline to file comments was Dec. 7, and replies to those comments are due by Dec. 21.

“The proposed rule disincentivizes employers from setting standards for parties with which they do business through corporate social responsibility programs, ESG initiatives, job training programs, safety and health initiatives and other mechanisms,” the HR Policy Association wrote to Roxanne L. Rothschild, executive secretary for the NLRB. “Such efforts benefit workers and society by establishing minimum standards throughout a company’s business and supply chain for worker safety, benefits, sustainability, and many other areas that promote a better economy for all,” she added.

Additionally, the group said, “At minimum, the Board should carve out [corporate and social responsibility] or ESG initiatives, routine contractual provisions, and similar minimum standards-setting from joint employer liability under any joint employer rule.”

As McKnight’s Senior Living previously reported, standards for joint employment have shifted back and forth over the past decade, blown askew by shifting political winds. The Biden administration has been more labor-friendly than the previous administration, and this latest proposal is no exception.

Read more about the long-term care industry’s response and other responses to the proposed rule here.