Free-Market Coalition Urges Action on Franchise Rule

Inside Sources cites the leadership role which CEI is playing in defining joint-employment as head of a coaltion of free-market advocacy groups. 

A coalition of free-market advocates sent a letter to lawmakers Tuesday urging them to support a bill designed to get a critical contracting rule under control.

Congress is currently considering a bill that is designed to better clarify what joint-employment is. The rule determines whether an employer is legally responsible for the employees of a company it contracts with. Employers take on a lot of legal burdens and potential costs when they become joint-employers.

The business community expressed particular concern over changes made to the rule during the last administration.  Critics argue the changes overstepped how the rule is supposed to be interpreted. The Competitive Enterprise Institute (CEI) is leading a coalition of free-market advocates who believe the bill will help address the problem.

“The undersigned organizations write in strong support of legislation, the Save Local Business Act,” the coalition letter detailed. “This bill would restore and harmonize National Labor Relations Act and Fair Labor Standards Act standards on when two or more businesses are deemed to be joint employers.”

Read the full article on Inside Sources.