Labor board recognizes 'employer status' of principal contractors for 1st time since new labor law enactment

A labor relations board Thursday recognized for the first time the "employer status" of principal contractors since the enforcement of a new labor law aimed at broadening workers' bargaining rights. The Yellow Envelope Act took effect last month, making prime contractors more accountable for subcontracted workers by expanding the definition of "employer" to a company that substantially controls working conditions even if it does not directly hire workers. The Chungnam National Labor Relations Co