Today, House Republicans are bringing to the floor H.J. Res. 98, which seeks to overturn the National Labor Relations Board's new rule that holds small businesses liable for another business' employees, even if they don't directly oversee them.
MAKE NO MISTAKE: House Republicans will always fight to protect the backbone of America's economy, our small businesses, from unnecessary bureaucratic red tape that hampers economic growth.
BACKGROUND ON THE NATIONAL LABOR RELATIONS BOARD RULE (Courtesy of the House Education and Workforce Committee):
Traditionally, two or more businesses were considered “joint employers” under the National Labor Relations Act if they shared “actual,” “direct,” and “immediate” control over the essential terms and conditions of employment, including hiring, firing, discipline, supervision, and direction of employees.
This predictable and clear standard ensured employers would not be saddled with collective bargaining obligations or with liability of a company they do not control.
The Obama National Labor Relations Board (NLRB) upended decades of precedent and broadly expanded joint employment in the 2015 Browning-Ferris case.
While the Trump Board restored the common sense, traditional joint employer standard, the Biden NLRB’s rule largely revives the Obama-era standard.
THE PROBLEM WITH THE NATIONAL LABOR RELATIONS BOARD RULE:
Working families and small businesses are up against an onslaught of new rules and partisan decisions from Biden’s NLRB.
One of the most concerning examples of this overreach is the joint employer rule that will sow confusion and destabilize the economy in a time where persistently high prices are crushing hardworking Americans.
Under the Biden NLRB’s rule, an employer now includes those who have only “indirect” or even “potential” control over employees’ essential terms and conditions of employment.
This extreme rule threatens to upend countless small businesses and destroy jobs across the country. It will leave small business owners with a great deal of uncertainty and less freedom in how to operate their businesses.
It will harm nearly every contractual relationship by discouraging larger companies from contracting or franchising with small and local businesses.
We know this rule will cause devastating impacts because, unfortunately, Democrats have implemented this standard before.
The Obama NLRB’s Browning-Ferris decision raised franchise operational costs by $33 billion. The decision caused 376,000 lost job opportunities in the franchise sector alone.
It increased NLRB unfair labor practice charges by 93 percent, imposing significant litigation costs on businesses both large and small.
TO PUT IT SIMPLY:
Jobs will be lost, consumer costs will rise, and fewer small businesses will be created.
Small business owners, such as franchisees, will have less freedom to operate their businesses.
Fewer individuals will have the opportunity to own their own business.
THE SOLUTION:
H.J. Res. 98, authored by Rep. John James (R-MI), rescinds Biden’s anti-freedom, anti-growth joint employer rule and prevents future anti-business administrations from implementing another similar job-killing regulation.
Specifically, H.J. Res. 98 is a Congressional Review Act resolution that will nullify the NLRB’s final joint employer rule, which recklessly holds a company liable for employees it does not employ or directly control.
This will help ensure that individuals working to achieve the American Dream of owning and running their own business aren’t impeded.
BOTTOM LINE: House Republicans will continue to oppose this kind of executive overreach, and will advance policies that empower America’s entrepreneurs and workers to succeed.
