Should companies be protected from being sued for labor violations committed by their contractors or franchisees?
Bill Summary
This bill amends the National Labor Relations Act (NLRB) and the Fair Labor Standards Act of 1938 to clarify what it means to be a joint employer. This bill reverses a 2015 ruling that companies could be held responsible for labor violations committed by their contractors or franchisees. Under this bill, an entity is an employer only if it directly exercises significant control over the essential terms and conditions of the employees' employment. Sponsor: Rep. Byrne, Bradley [R-AL-1]
View full bill text ➔
How do you feel?
You can still save your opinion to your scorecard, but since the vote has already taken place, your opinion won't be sent to your lawmakers.
Oppose
Support
Opponents say
• Critics argue that franchising jobs have been lost as the incentive to franchise has been struck down, but it is better to provide protections for existing workers, and encourage companies to hire workers at a competitive rate, than advocate for an abundance of underpaid and unprotected jobs.
• The rise of franchising, contracting, and other similar employment practices have made it harder to enforce worker protections. The NLRB’s 2015 ruling helps vulnerable workers challenge unresponsive employers, ensuring that all parts of the employment chain - no matter how diffuse - are responsible for protecting workers.
• The 2015 NLRB ruling ensured that "employers will no longer be able to shift responsibility for their workers and hide behind loopholes to prevent workers from organizing or engaging in collective bargaining.”
• The rise of franchising, contracting, and other similar employment practices have made it harder to enforce worker protections. The NLRB’s 2015 ruling helps vulnerable workers challenge unresponsive employers, ensuring that all parts of the employment chain - no matter how diffuse - are responsible for protecting workers.
• The 2015 NLRB ruling ensured that "employers will no longer be able to shift responsibility for their workers and hide behind loopholes to prevent workers from organizing or engaging in collective bargaining.”
Proponents say
• The NLRB’s 2015 decision to change a longstanding definition of what it meant to be an employer -- ruling that companies could be held responsible for labor violations committed by their contractors or franchisees -- has resulted in a loss of up to 1.7 million U.S. franchise jobs.
• The NLRB’s ruling hits small businesses employers hardest: franchises provide valuable help to business owners who do not have the resources or expertise to manage workers that provide a particular service, while also insulating them from liability if workers screw up or file an unfair-labor claim. Franchising should be encouraged.
• Business owners should not be responsible for employees (of contracted agencies, or provided by staffing agencies) that they have not personally hired or even met.
• The NLRB’s ruling hits small businesses employers hardest: franchises provide valuable help to business owners who do not have the resources or expertise to manage workers that provide a particular service, while also insulating them from liability if workers screw up or file an unfair-labor claim. Franchising should be encouraged.
• Business owners should not be responsible for employees (of contracted agencies, or provided by staffing agencies) that they have not personally hired or even met.
- Byrne Introduces the Save Local Business Act
- The National Labor Relations Board’s New Joint Employer Standard: How Has It Changed the Legal Landscape?
- Congress must pass the save local business act to provide clarity
- NLRB rules against business in pivotal joint-employer decision
- NLRB Joint Employer Ruling, Good for Workers and Businesses
- The joint employer standard and the National Labor Relations Board
- Jumping for Joint Employer: The EEOC Files Amicus Brief Supporting Broadened Definition of Joint Employer In High-Profile NLRB L
- Two Years Ago, This Ruling Rocked Franchising To Its Core. Now Everything May Change Again
