UPDATE: On Thursday, December 14, the National Labor Relations Board (NLRB) reversed its August 2015 Browning-Ferris Industries decision which fundamentally changed and expanded the “joint employer standard.” The joint employer standard defines who ultimately is liable for employees. The Obama-era’s NLRB, through it’s August 2015 BFI decision, made a company much more likely to be held responsible for the employment conditions in a separate business. This unlimited joint employer liability posed an existential threat to the franchise business model as it made the relationship between franchisors and franchisees unclear and unreliable. The recent decision to reverse the joint employer standard is welcome news for franchising, but in order to ensure lasting relief from this regulatory threat, Congress must enact H.R. 3441, the Save Local Business Act.
On November 7, the U.S. House of Representatives passed the Save Local Business Act, H.R. 3441 legislation that fixes the flawed NLRB standard of “joint employer” in the National Labor Relations Act (NLRA) and Fair Labor Standards Act (FLSA).
The August 2015 joint employer standard created by the National Labor Relations Board (NLRB) and its corresponding harm to thousands of local businesses will not go away until Congress enacts a permanent legislative solution.
It is vital to communicate with your elected officials about the dangerous impact joint employer will continue to have on small businesses until a legislative solution is reached.
The Save Local Business Act now awaits consideration in the Senate. Stay tuned for what you can do to ensure your Senator votes to fix the flawed NLRB definition of joint employer.
Please click here to learn how the new “joint employer” standard threatens businesses everywhere.
Please click here to view a quick video about how the joint employer standard has changed and what it means for small businesses across America.
Main Street businesses, including local franchise businesses, are a pillar of job creation. America’s 700,000 franchise establishments support nearly 8.4 million direct jobs, $900 billion of economic output and 2 percent of the Gross Domestic Product (GDP). While the franchise industry is projected to grow faster than the overall economy, adding over 13,000 new franchise establishments and 278,000 direct jobs in 2016, the industry continues to face significant public policy threats that put the franchise business model at risk. The franchise industry would see additional growth if the following policy changes were to be enacted: Click here to view the 2017 Franchise Public Policy Platform.