CEI Praises House Plan to Roll Back NLRB Joint Employer Rule

Today, Rep. Bradley Byrne (R-AL) will introduce a bipartisan bill to roll back the National Labor Relations Board’s controversial joint employer ruling from 2015. The ruling abruptly changed and muddled the long-standing test for determining when two businesses, such as a franchisor and franchisee or a business and a contractor, will be held jointly liable for employment decisions. CEI labor policy expert Trey Kovacs praised the new bill:

Rep. Bradley Byrne’s (R-AL) bipartisan bill restores sanity and clarity to government rules related to joint employer liability. Without the passage of this legislation, a patchwork of rules governing employer liability will continue to hinder thousands of beneficial business relationships including franchise businesses, contractors, and temporary staffing agencies.

This bill restores longstanding rules that served all stakeholders well—employers, workers, and consumers—for decades. Congress is reclaiming its responsibility from bureaucrats for a policy that has a huge economic impact. It is imperative that Congress quickly pass this legislation. 

The bill restores a more common-sense definition of joint employer under both the National Labor Relations Act and Fair Labor Standards Act and includes Democratic co-sponsors Lou Correa (D-Calif.) and Henry Cuellar (D-Texas).

Background:

• Redefining Workers out of a Job
• NLRB’s New Joint Employer Standard Threatens Business Formation and Job Creation
• This Overlooked Labor Rule Could Be a Huge Drag on U.S. Businesses