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Breaking: Republicans (& a Democrat) Announce Bill to Rewrite Joint Employer "Definition"


A few years ago, the National Labor Relations Board ("NLRB") issued a decision in which it made it easier to hold employers jointly liable for workplace violations committed by their franchisees or contractors.  That decision, Browning-Ferris, dealt with a company that was held to be responsible for the treatment of its employees from a staffing agency (as the company was deemed to have control over wage and working conditions of these temp employees).  In doing so, the definition of "joint employer" was refined to allow for an employee to be considered an employee of both a temp agency and a company where they had been placed, despite the fact that the employee's supervisors lacked the traditional requisite degree of control over the employee.  This expanded, "indirect control" standard to establish joint liability has become a thorn in the side of many employers and pro-business groups around the country ever since the NLRB issued its decision.

With the NLRB not yet having a majority of Republicans on the five member Board, Republicans in Congress have instead turned their attention to a bill that would rewrite the definition of joint employer (and subsequently override the expansive scope imposed by Browning-Ferris).  Today, the 'Save Local Business Act', was introduced by a few members of the House.  Under this proposed bill, a stricter standard would be imposed in which only an employer that wields direct control over another company's employees can be classified as a joint employer that is jointly liable for the other company's employment and labor law violations.

As always, the question is whether Republicans can hold onto their slim majority to push this bill through both the House and Senate (assuming few Democrats sign onto this legislation...which I would not expect to happen in large numbers).  While there is a bit more leeway in the House, the Senate might be the one to keep an eye on.  Republicans hold a 52 - 48 majority.  As a result, if Republicans lose 3 votes from its caucus, that would likely mean the end of this bill becoming law.  With that being said, with many Republicans in Congress eager for a victory (or at least passing legislation to appease its base), I would expect this one to make its way through and become law sooner rather than later.



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