New Ruling on Status of Subcontractors in Home Building

The National Labor Relations Board could consider them "joint employees"

September 1, 2015

Home builders are opposing a National Labor Relations Board (NLRB) ruling that could put them on the hook for issues involving subcontractors, CNBC reports.

Tom Woods, the chairman of the National Association of Home Builders (NAHB), said in a statement that the policy would harm small builders that rely on subcontractors like plumbers, electricians, and framers.

“It will cripple small businesses across the country, including the home building industry as it is in its fragile recovery," Woods said.

CNBC says it is still unclear how exactly the ruling would work (subcontractors often work for multiple builders in a short period of time, for instance), but builders are already preparing to fight the ruling if a case arises.

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