House bill to reverse Browning-Ferris advances

Business Management Daily cited the Competitive Enterprise Institute and its role to overturn the Browning-Ferris act in order to clarify what constitutes that a “joint employer” must have “actual, direct, and immediate” control over employees to be considered as such. 

Legislation that would overturn the National Labor Relations Board’s 2015 Browning-Ferris decision has been approved by the House Committee on Education and the Workforce. The “Save Local Business Act” (H.R. 3441) would clarify what constitutes a “joint employer,” according to the bill’s lead sponsor, Rep. Bradley Byrne (R.-Ala.).

The bill was approved out of committee Oct. 4 on a 23 to 17 vote. It currently has 95 co-sponsors, including bipartisan support from three Democrats.

The legislation asserts that two or more employers must have “actual, direct, and immediate” control over employees to be considered joint employers under the National Labor Relations Act and Fair Labor Standards Act.

The NLRB’s Browning-Ferris Industries decision has been controversial since it was issued two years ago. The board ruled that companies sharing only “indirect” or “potential” control over another’s workforce may be considered joint employers for the purpose of resolving unfair labor practices charges. Especially affected have been companies that operate through franchise relationships, as well as temp and other staffing agencies that supply workers to other employers.

Conservative groups railed against Browning-Ferris—and have actively supported a legislative fix to overturn it. Among groups lining up to support H.R. 3441: Americans for Tax Reform, Americans for Prosperity, the Competitive Enterprise Institute, Heritage Action, the American Legislative Exchange Council’s advocacy arm and the National Taxpayers Union.

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