By CityBusiness Staff
Congressional lawmakers looking at the impact of an Obama-era labor policy heard Tuesday from a New Orleans-based business concerned that it could derail plans to expand in the Gulf South.
Dat Dog, the gourmet hot dog joint that opened on Freret Street in 2011, was one of several businesses asking the House Committee on Education and the Workforce for clarification on joint employer policy.
Under the Obama administration, the Labor Department significantly broadened the definition of a joint employer, and the National Labor Relations Board said a company could be considered a joint employer even if it had only indirect or unexercised control.
In previous years, the NLRB had said a company had to have direct control over the actions of a subcontractor or franchisee’s employees in order to be considered a joint employer.
Jerry Reese, who handles franchise development for Dat Dog, said the new standard could hurt plans to expand in Louisiana and beyond. The restaurant has put new restaurants in Lafayette and Hattiesburg, Mississippi and announced this year it is looking for franchisees in the Gulf South.
“Implementing our expansion plan will certainly depend on Congress’s willingness to help address regulatory obstacles that make the future growth of small businesses, like ours, uncertain,” Reese said. “As with any business that is fortunate enough to grow, we now face new risks. Joint employer is the most prominent risk on our minds.”
“Make no mistake about it: this policy disproportionately affects small businesses,” he added. “Big corporations have the resources, the attorneys and the economies of scale to adapt to joint employer … It’s the small employers like Dat Dog that may run out of resources before we even get started.”
U.S. Rep. Virginia Foxx, R-North Carolina, who chairs the committee, said it supports rolling back the joint employer policy to what it was in previous years.
Over the past few years, we have only begun to comprehend the horrors of human trafficking and how it established a foothold in this country. Thanks to the vigilance of faith-based groups, humanitarians across the globe, and the courage of survivors, we are learning more about the tactics and loopholes human traffickers exploit to prey on the most vulnerable among us.
Children are often the ones most vulnerable to exploitation. It’s estimated that one in six endangered runaways are likely victims of this horrific crime. Earlier this year, with the leadership of Representatives Guthrie and Courtney, the House passed the Improving Support for Missing and Exploited Children Act.
That bipartisan legislation supports the critical efforts of the National Center for Missing and Exploited Children. It includes positive reforms to encourage new and innovative ways to recover and protect missing and exploited children, including those who are victims of trafficking. We need to do everything possible to ensure this positive work can continue, and that’s what H.R. 1808 was all about.
But this is an issue that demands our ongoing attention. More solutions are needed. And that’s why we’re here today — to build on the bipartisan work we’ve already accomplished.
The Department of Labor has a unique vantage point for spotting violations in workplaces that can be tell-tale signs of modern slavery and labor exploitation. This bill equips DOL personnel to form partnerships with law enforcement to detect and address signs of human trafficking in America’s workplaces.
If we can shed light in any corner where this evil may lurk, we must.
I commend Mr. Walberg’s leadership on this issue, and Mr. Sablan for working with him so passionately. I am proud that the Committee on Education and the Workforce could do its part to support their work and bring this bill to the floor.
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