Skip to main content

Updated: The Save Local Business Act Continues to Pick Up Steam


Back in July, I pointed readers to a bill that was being introduced in Congress:  H.R. 3441 a/k/a the Save Local Business Act.  This bipartisan bill seeks to reverse a 2015 National Labor Relations Board ('NLRB') decision, Browning-Ferris, which changed the definition of joint employer.  Almost immediately after this decision was issued, employers and pro-business groups cried foul as Browning-Ferris made it easier for companies to be considered joint employers and therefore become liable for subsequent labor law violations committed by franchisees and contractors.

At this point, readers might be wondering what is next?  Could the NLRB take action before this bill would become law?  Doubtful.  Although the NLRB has recently taken on a 3 - 2 Republican majority (and could therefore issue a decision to 'undo' Browning-Ferris), the Republican controlled Congress is aggressively moving this bill along.  Today, Wednesday October 4th, the House Education and Workforce Committee is expected to vote on and approve the bill.  If/when the bill makes it out of the Committee, it would head to the full House for further debate and subsequent vote.  With Republicans controlling the House (and being able to choose what bills to debate and vote on, as the majority party), I would expect this bill to move along to a final vote sooner rather than later.

Won't this bill need Democratic support to pass?  In short, Republicans in Congress hungry for a legislative victory will likely do what they can to reach across the aisle.  In fact, the bill, originally introduced by Republican Congressman Bradley Byrne has apparently picked up the support of several Democratic Congressmen including Henry Cuellar, Lou Correa, and Collin Peterson.  I would expect additional Democrats in the House to jump on board in the coming weeks (or at least by the time the full House would vote on H.R. 3441.)  The question will then turn to what Senate Democrats will do.  I would expect less support for the bill in the Senate among Democrats (which have thus far done little to support Republican led bills) but it is certainly possible that a few Democratic Senators would voice their support for this legislation.

As for pro-business groups?  Earlier this week, approximately 28 pro-business groups published a letter announcing their support for the bill.  While this support alone will not carry the bill across the finish line, it certainly conveys the growing vocalness among pro-business groups in the private sector for Congress to do something about Browning-Ferris.

Stay tuned.

Comments

Popular posts from this blog

NLRB: Discussion Among Employees About Tip Pooling is Protected Concerted Activity

  This Advice Memorandum from the National Labor Relations Board’s Associate General Counsel, Jayme Sophir, addressed whether employees which discussed and complained about tip pooling at work constituted protected concerted activity. In relevant part, an employer in New York operated a chain of steakhouses.  While tip pooling was in place at these steakhouses, some of the employees objected to it on the grounds that it was not transparent and improperly divided tips among the workers.  Employees were told not to complain or talk to each other about the tip pool and were told that doing so would endanger their jobs.  Despite the employer later attempting to provide some clarity as to how the tips were being divided, rancor still existed among some employees.  At one point, the employees were told by a general manager that some employees that had been talking about the tip pool were “cleared out” and the employer would continue to do so. In the Advice Memorandum,...

Distance in a Non-Compete Agreement Measured "As the Crow Flies"

Ginn v. Stonecreek Dental Care - Court of Appeals, Twelfth Appellate District of Ohio Facts :  Dr. R. Douglas Martin ("Martin") sold his dental practice to an employee who worked there, Dr. David Ginn ("Ginn").  In doing so, Martin and Ginn signed a contract for the sale which contained a non-compete provision that prohibited Martin from engaging in business "within 30 miles" of the practice for five years starting from October 2010.  While Martin initially stayed on and worked with Ginn for a period, the relationship subsequently deteriorated between the two and Martin went to work for another dental office.  The new dental office was less than 30 miles away when measuring the distance in a straight line.  However, when driving between the offices, the distance was more than 30 miles. Ginn filed a claim against Martin on the grounds that Martin breached the non-compete.   At the trial court level, the court found that "within 30 miles"...

Breaking: Labor Secretary Rumored to Be Leaving Administration

A few hours ago, word leaked out that Labor Secretary Marty Walsh (“Walsh”) is in the midst of negotiations to head up the NHL Players Union and leave his position at the Labor Department. Walsh, who has served as the sole Labor Secretary under President Biden, has taken part in a labor renaissance of sorts as support for organized labor has increased during his term as Labor Secretary (although the number of workers that have joined a union over the past two years has not grown as mush as some expected.)  He has also overseen the ongoing negotiations with rail workers over a new contract, although that matter is still on shaky ground and playing out as we speak. As for who might step into the vacant Labor Secretary role, there are already rumblings that President Biden should nominate Deputy Labor Secretary Julie Su (a strong labor advocate) or even a progressive like Senator Bernie Sanders.  Until Walsh officially gives his notice, however, I would expect some/many potential...