New House and Senate bills would restore the National Labor Relations Board’s previous joint-employer standard that draws clear lines between franchisors and franchisees. The Protecting Local Business Opportunity Act, by Senate HELP Committee Chairman Lamar Alexander (R-Tenn.) and Sen. Johnny Isakson (R-Ga.) and House Education & the Workforce Committee Chairman John Kline (R-Minn.) and subcommittee chair Phil Roe (R-Tenn.), would allow companies to be considered joint employers only if both exercise “actual, direct and immediate” control over “essential terms and conditions of employment.”
That’s in stark contrast to the NLRB's new standard, under which the NLRB says it can hold franchisors and franchisees -- or businesses and their vendors, staffing agencies, and other partners -- jointly responsible for labor practice violations even if they don’t have direct control over labor decisions at the location where the violations occurred. The NRA supports the legislation.
Learn more about the bill here. Read Alexander/Roe's statement here.