"Regulatory Limbo" Under the NLRB
WASHINGTON, D.C., August 9, 2016
One year ago, bureaucrats at the National Labor Relations Board (NLRB) handed a gift to Big Labor that will upend a business model that's paved the way to the American Dream for countless individuals.
The NLRB’s partisan decision in Browning-Ferris Industries overturned decades of labor policy, and it was issued despite concerns voiced by small business owners across the country.
Clint Ehlers, owner of two local FASTSIGNS stores in Pennsylvania, warned that a revised joint employer standard would “result in fewer new franchised businesses, at a time when our economy is thirsty for growth and expansion.”
Then there is Fred Weir, who started four restaurants in Georgia employing 160 workers. Weir testified last year:
Without any doubt, there will be fewer opportunities for new entrepreneurs who want to try to start their own businesses, and would have used the franchise model to do so, but who find that the joint employer standard has shut down franchising as a pathway to prosperity.
Small-business owners say they are shouldering higher costs and scaling back expansion plans because of a revised federal rule … The policy broadens the circumstances in which two businesses can be counted as employers of the same group of workers, reversing the NLRB’s 30-year-old standard for determining such ‘joint-employer’ status … Businesses say they are in a regulatory limbo because the new standard is vague about what constitutes control.
Mr. Griffin of the NLRB said the franchising community is overreacting.
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