The NLRB exercises jurisdiction based on the annual amount of business done by the enterprise or on the annual amount of its sales or of its purchases — these are called “jurisdictional standards.”
The Board’s current jurisdictional standards are:
In 2020, the Board adopted a “substantial religious character” test1 previously formulated by the U. S. Court of Appeals for the District of Columbia Circuit,2 under which the Board doesn’t exercise jurisdiction over faculty at an institution that:
Under the newly adopted test, the Board will not inquire into the nature of the institutions’ activities or those of its faculty members.
In 2021, the Board modified its test for determining whether faculty members at colleges and universities are managerial employees.3 The Board will look to whether the faculty body exercises “effective control” at the school and whether, based on the faculty’s structure, the subgroup of faculty members petitioning for an election is included in that managerial faculty body. The Board held in the case before it that the university could not prove the non-tenure-track faculty members were structurally included in the employer’s faculty body and therefore could not prevent the Board from exercising jurisdiction. In 2021, the Board also scrapped a proposed rule that would have made student workers at private universities ineligible to form or join unions.
The Board also does not exercise jurisdiction over racetracks; owners, breeders and trainers of racehorses; or real estate brokers.
Though the NLRB has historically served as the exclusive forum for labor disputes among private employers and their employees, California's legislature passed Assembly Bill 288 (“AB 288”),4 which Governor Gavin Newsom signed on September 30, 2025. AB 288 expands both worker rights and the authority of California's Public Employee Relations Board (“PERB”), a state agency that traditionally has overseen labor relations for public sector employees in California. PERB administers and enforces laws related to collective bargaining and unfair labor practices for public employees; with AB 288, PERB’s authority extends to certain private sector workers.
Previously, private sector labor relations have been governed by the NLRB. However, AB 288 now empowers PERB to enforce labor rights for private sector workers when federal protections are unavailable or ineffective. For example, PERB can now process union representation petitions and certify exclusive bargaining representations, investigate and decide upon unfair labor practice charges, and order remedies and impose civil penalties in relation to unfair labor practices. PERB’s ability to take these actions is triggered by specific circumstances, including:
1. Bethany College, 369 NLRB No. 98 (2020)
2. University of Great Falls v. NLRB, 278 F.3d 1335 (D.C. Cir. 2002)
3. Elon University, 370 NLRB No. 91 (Feb. 19, 2021)
4. Lab. Code Sec. 923.1
5. National Labor Relations Board v. State of California, No. 2:25-cv-02979-TLN-CKD (E.D. Cal.)