As you know, an overreaching National Labor Relations Board (NLRB) has upended 30 years of labor law by changing the definition of “joint employer” under the National Labor Relations Act (NLRA). In doing so, they are fundamentally altering what it means to be a business owner or an employer. This marks a very significant liability shift and as an owner or employer, you can now be held liable for actions and activities of employees who are not your own.
This past August, the NLRB issued its decision in a case called Browning-Ferris Industries (BFI) in which the NLRB completely re-wrote the joint employer standard by including “indirect” and “potential” control as part of a new standard. In doing so, the NLRB ignored years of legal precedence and created an environment of uncertainty that will put pressure on primary companies to assert more authority over small businesses to limit new potential liabilities under federal labor law. This short-sighted and highly political decision by the NLRB could impact virtually any business to business contractual relationship and force many larger employers or corporations to stop outsourcing any aspect of their business or limit franchising opportunities.
AH&LA co-chairs The Coalition to Save Local Businesses which has been working aggressively to educate members of Congress on the negative consequences of this change to our industry and urge them to reinstate the previous joint employer standard. Through our collective efforts, legislation entitled: “Protecting Local Business Opportunity Act” has been introduced in the Senate (S. 2015) and the House (H.R. 3459) and would protect the traditional, direct-control definition of joint employer which has been the standard under the NLRA for decades. We need your help to ensure Congress acts on this legislation and moves it to the finish line.
Please take a few short minutes now to urge your member of Congress to cosponsor and support S. 2015/H.R. 3459, the “Protecting Local Business Opportunity Act.”