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Updates


Coalition to Save Local Businesses Educates Congressional Staff on Joint Employer Issue

Last month, the Coalition to Save Local Businesses (CSLB) held a bi-partisan briefing for the House Small Business Committee on how a new National Labor Relations Board (NLRB) joint employer standard will affect all small businesses.

For decades, the standard for establishing joint employment has been shared “direct and immediate control” over employees’ essential employment conditions. Last year, NLRB general counsel Richard Griffin filed an amicus brief in the Browning Ferris Industries case, arguing that the NLRB should instead adopt a broader standard, based on vaguely defined “indirect” or “potential control” over these conditions. Last December, the general counsel authorized several complaints against a franchisor and a number of its franchisees that seem to apply that new standard. The general counsel issued yet another wave of these complaints last month.

The briefing included a panel, moderated by CSLB Executive Director Michael Layman, where small business owners outlined the significant challenges that a broader definition of joint employer would create for their small businesses.

“I have been both an employee and a franchisee,” said John Draper, CEO of Viridian Group LLC in Bayside, WI. “I know firsthand that every franchise system has brand standards that maintain the quality of products and services. These standards are part of the reason I have pursued franchising as a long term career… However, employment practices and policies are for the franchisee to handle. Franchisors can and do provide support to franchise owners in providing high-quality products to customers. Decisions about the daily management of every one of my locations belong to me, the franchisee. The day-to-day responsibilities are mine.“

“It is difficult for me to understand why complaints about a completely unrelated business in an industry completely different from mine should impact the day-to-day operations of my Store and ultimately, my livelihood,” added Mariana Huberman, owner of a UPS Store location in Washington, DC. “It is also confusing to me why the NLRB or any other government entity would be taking steps to undermine franchising in general at a time when franchised businesses are contributing so much to the overall economy.”

Also speaking on the panel were Maury Baskin of Littler Mendelson and Steve Keen, Manager of Legislative Affairs for the National Federation of Independent Business, who explained how the proposed new standard would harm businesses far beyond the franchise sector.

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