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What They’re Saying: Workers and Job Creators Need Joint Employer Reform

Too often, misguided federal policies stand in the way of job creation, entrepreneurship, and economic growth in local communities.

Too often, misguided federal policies stand in the way of job creation, entrepreneurship, and economic growth in local communities. That’s why, this week, the House will take an important step toward removing roadblocks to opportunity by debating the Save Local Business Act. The legislation, introduced by Rep. Bradley Byrne (R-AL), will roll back a radical and unworkable joint employer standard and restore fairness and commonsense to the workplace.

Check out what they’re saying on why this legislation is so important for America’s workers and job creators:

  • U.S. Chamber of Commerce: “The U.S. Chamber of Commerce strongly supports H.R. 3441, the Save Local Business Act, which would clarify and restore balance to the National Labor Relations Act’s (NLRA) and Fair Labor Standards Act’s (FLSA) criteria for determining when employers will be considered ‘joint employers.’”

  • Coalition to Save Local Business: “The Save Local Business Act strikes the right balance between protecting local businesses and employees and providing them with as much clarity and certainty as possible.”

  • International Franchise Association (IFA): “IFA strongly supports the Save Local Business Act, which provides a bipartisan, common-sense solution to address the uncertainty experienced by local franchise businesses under the vague and overly broad joint employer standards that have developed recently.” 

  • National Taxpayers Union: "Data shows the NLRB rule continues to have a negative impact on the franchise industry, one of the most dependable sources of job creation … Such drastic job loss will further strain taxpayer funds by necessitating greater expenditures on programs like unemployment insurance, Medicaid, and housing assistance.”

  • National Retail Federation: “Without congressional action, retailers and chain restaurants will continue to face unlimited and unpredictable joint employer threats that slow job creation and entrepreneurship. For all of these reasons, NRF strongly supports this important bipartisan legislation.”

  • Independent Electrical Contractors“It’s clear to see just how this broad and ambiguous new standard increases the cost of doing business. It makes it more difficult for companies to continue to do great work within the community and provide well-paying jobs to more electricians.”

  • Workforce Fairness Institute: “The legislation undoes many of the confusing and vague regulations within the new joint employer standard, which hurt job creators and their employees. We will continue to advocate for passage of the Save Local Business Act in both houses of Congress so that this meaningful legislation reaches President Trump’s desk and becomes the law of land.”

  • Associated Builders and Contractors: “H.R. 3441 will help restore the ‘joint employer’ standard that has been in place for more than 30 years and bring stability back into the economy for contractors and subcontractors across the country ... ABC applauds Speaker Ryan for bringing this legislation to the floor and Rep. Byrne for introducing H.R. 3441.”

  • Americans for Prosperity: “H.R. 3441 would establish a more reasonable ‘direct and immediate’ responsibility standard, and eliminate a government-imposed burden that made entrepreneurship more expensive and less attractive. This legislation represents another opportunity to roll back unnecessary and politically-motivated red tape and an important first step toward pro-growth labor reform.”

  • Food Marketing Institute: “The Save Local Businesses Act … would provide the necessary clarity to the joint employer standard and would help ensure that the food retail industry can continue to fulfill its diverse employee needs.”

  • Associated General Contractors of America“The Associated General Contractors of America (AGC) supports the Save Local Business Act which will clarify what constitutes a joint employer.”

  • American Hotel and Lodging Association (AHLA): “Protecting small business hoteliers from unnecessary and often frivolous joint employer liability is one of AHLA’s top legislative priorities for the 115th Congress.”

  • National Association of Home Builders (NAHB): [The Save Local Business Act] provides employers with a clear-cut standard for joint employment, and will allow building firms and other construction businesses to operate with certainty in their labor and employment obligations under the law.”

  • Coalition for a Democratic Workplace (CDW): “The NLRB’s excessively broad definition of ‘joint employer’ will continue to impede business development and economic growth until Congress enacts a permanent, legislative solution.”

  •  International Council of Shopping Centers: “ICSC believes H.R. 3441 will restore the decades-long and widely-accepted definition of what constitutes a ‘joint employer’ and provide needed clarity to America’s shopping center owners, service providers and tenants.”

  • HR Policy Association: “This bill would simplify what constitutes joint employer status, granting businesses and workers across the country the clarity needed to establish relationships that work best for both employers and employees.”

  • Competitive Enterprise Institute“Without the passage of [the Save Local Business Act], a patchwork of rules governing employer liability will continue to hinder thousands of beneficial business relationships including franchise businesses, contractors, and temporary staffing agencies.”

  • National Restaurant Association: “We urge swift passage of this important bipartisan legislation that would protect small businesses and their employees by restoring the clear, traditional joint employer standard.”

  • Asian American Hotel Owners Association: “Critical clarifications to the legal definition of ‘joint employer’ proposed by the bipartisan Save Local Business Act are essential to the health of small businesses across the country owned and operated by AAHOA’s hoteliers … Congress must act swiftly to stabilize the franchising and hospitality industries; inability to do so will have grave consequences in every Congressional district.”

  • Retail Industry Leaders Association: “The previous ‘direct control’ standard to determine joint employer status was clear, consistent and predictable for all stakeholders, but the new ‘indirect control’ standard creates an undefined, confusing definition of joint employment. For this reason, it is imperative for Congress to clarify the law by passing H.R. 3441, the Save Local Business Act.”

  • Society for Human Resource Management: “The Save Local Business Act would overturn the National Labor Relations Board’s (NLRB) Browning-Ferris Industries (BFI) decision which fundamentally changed the joint employer standard that had been in place for more than 30 years … SHRM strongly supports this legislation and recommends its swift passage.”

  • Southern Christian Leadership Conference: “In what has become a rarity in American politics, a bipartisan effort is underway to rectify this problem. H.R. 3441, the Save Local Business Act, is designed to clarify the new joint employer standards and allow business owners to have certainty and rational rules going forward. [The SCLC] strongly encourage[s] Congress to take a hard look at this legislation and advance it in short order.”

  • National Franchisee Association: “Until this law is passed, franchisees will face the daily threat of increased lawsuits, lack of franchisor support and massive consolidation. A permanent fix – such as that contained in the Save Local Business Act – is needed to preserve the integrity of the business model."

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