WASHINGTON, D.C. - Congressman Jason Lewis (MN-02) issued the following statement after cosponsoring the Save Local Business Act, which was introduced today:
‘The National Labor Relations Board (NLRB) has changed the traditionally accepted definition of a ‘joint employer’ with little regard for the people in the middle-- hardworking Minnesotans who run or work for a small business. We need to return to the accepted standard of who actually has ‘direct control’ before these businesses-- and the jobs they provide-- are threatened by joint employer’s increased risk of liability and the accompanying constraints. The Save Local Business Act will help people in Minnesota know where they stand under the joint employer standard, and give them freedom from the uncertainty that this poorly thought-out policy has created.”
Background: On August 27, 2015, the NLRB issued a decision in Browning-Ferris Industries of California (BFI) that overturned decades of Board policy in determining whether two or more entities should be considered “joint employers” under the National Labor Relations Act. Under the traditional joint employer standard, employers must have actual, direct, and immediate control over terms and conditions of employment including hiring, firing, discipline, supervision, and direction of employees. Under the new “BFI” standard, companies sharing only indirect or potential control over another’s workforce may be considered joint employers, the ‘right to control’, even if not exercised, is evidence of joint employer status.
An expanded joint employer standard would seriously undermine the franchise business model and would cause franchisee owners to be relegated to a middle-management position at the businesses they worked to create. This would result from franchisors facing increased threats of liability and, as a result, putting restrictions on their franchisees.
