EMPLOYER REFUSAL TO BARGAIN IN GOOD FAITH; REFUSAL TO BARGAIN IN GOOD FAITH (FOR SPECIFIC SUBJECTS, SEE SCOPE OF REPRESENTATION, SEC 1000) – Persons Required to Bargain; Alter Egos, Joint Employers (See also 201)

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Multiple entities have a joint-employer relationship if each entity has at least a partial right to control certain employment conditions or direct the manner and method in which work is performed. (County of Ventura (2018) PERB Decision No. 2600-M, pp. 28-29.) Under the single-employer doctrine, in contrast, PERB looks at four factors: (1) functional integration of operations; (2) centralized control of labor relations; (3) common management; and (4) common ownership or common financial control. (Id. at p. 18.) Single employer status does not require the presence of all four factors. (Ibid.) PERB’s inquiry considers not only how many factors are present, but also to what extent they are present. (Id. at p. 19.) In assessing a single-employer claim, integrated provision of services and use of a common business name are significant factors. (Id. at pp. 19-20 & 42-43.) The four factors assist PERB in analyzing the practical realities to determine whether requiring bargaining on a single-employer basis will foster fair and effective collective bargaining by bringing to the table the parties who are able to work out difficult issues and foster harmonious labor relations. (Id. at pp. 22, 25 & fn. 29.) (pp. 35-36.) Entities in a single-employer relationship must bargain over all terms and conditions of employment, while those in a joint employer relationship must bargain only over terms they control or partially control. (Id. at p. 33.) Neither a joint-employer relationship nor a single-employer relationship reflects a formal merger of separate entities. (Id. at pp. 40-41.) Rather, each is a legal construct for collective bargaining purposes. (Id. at pp. 40-43.) Such a construct has legal significance only for the purpose of representation and collective bargaining. (Id. at pp. 41-42 & 49.) (pp. 36-37.) A single-employer or joint-employer finding neither expands nor contracts the entities under PERB’s jurisdiction. (Id. at pp. 41-43.) Thus, when a single-employer or joint-employer relationship exists, PERB asserts jurisdiction only over those entities in the relationship that otherwise fall under PERB jurisdiction. (Id. at pp. 39-43.) (p. 37.)