Microsoft raises concerns over contractor laws

Microsoft Corp has asked a court to reconsider a ruling that would have implications on their contract workers, amid fears it will disrupt the status quo of contractors in Silicon Valley.

An August 2015 decision by the National Labor Relations Board expanded the definition of a "joint employer", which could require more companies to bargain with and have liability for workers hired by contractors – Reuters reports.

The decision expanded the test for joint employment beyond whether a company had “direct and immediate” control over employment conditions of another company’s workers, to consider indirect or unexercised control.

Microsoft argues that the ruling was too broad and the decision would discourage them and others from directing contractors to provide benefits to their employees, for fear the directive would make Microsoft a joint employer under the new standard.