E&W Blog

The Biden National Labor Relations Board’s (NLRB) joint employer standard revives the Obama-era Browning-Ferris decision and implements a similarly broad and boundless standard that will only create more confusion, impose massive costs and liability on American businesses, and further destabilize the economy. 
 
The last time Democrats implemented this senseless rule, the effects were devastating. An economic analysis found that the Browning-Ferris decision raised franchise operational costs by $33 billion and resulted in nearly 376,000 lost job opportunities in the franchise sector. 
 
Republicans have a plan to stop this reckless overreach. H.J. Res. 98 would nullify the Biden administration’s heedless rulemaking and restore the commonsense, traditional joint employer standard. 
 
Over 100 organizations have announced public support for H.J. Res. 98; here’s what they’re saying: 

“The NLRB's 2023 rule expands the scope of what constitutes a joint employer to an unprecedented degree, increasing liability risks and compliance burdens for restaurant businesses of all sizes. This change is not merely administrative; it redefines what it means to be an employer in our industry. … In light of these concerns, we ask for your support of the CRA resolutions to reverse the NLRB’s overreaching Joint Employer rule.” — National Restaurant Association

“The undersigned organizations, on behalf of a diverse group of workers, small businesses, and critical sectors of our economy, write in strong support of H.J.Res.98/S.J.Res.49, a joint resolution of disapproval under the Congressional Review Act to nullify the National Labor Relations Board’s (NLRB) Final Rule on Joint-Employer Status. This misguided rule will harm millions of workers and small businesses across the country, and we urge you to vote to protect your constituents from the NLRB’s overreach.” —72 organizations representing workers and small businesses

"This overreaching and unworkable joint employment policy is designed to change the rules in the middle of the game for hundreds of thousands of franchise owners and turn them into middle managers in their own businesses. What's worse, we have seen this misguided policy before and it resulted in hundreds of thousands in lost job opportunities, billions in increased costs for franchised business, and a doubling of lawsuits." — Mike Layman, International Franchise Association 

“The final rule issued by NLRB broadly expands the traditional understanding of the joint employer standard, increasing liability for businesses and ensuring wide-sweeping economic harm. I am proud to stand behind bipartisan CRA efforts led by Congressman John James (R-Mich.) in the House and Senators Bill Cassidy (R-La.) and Joe Manchin (D-W.Va.) in the Senate to protect American small businesses, workers, and consumers from this reckless bureaucratic action.” — Grover Norquist, Americans for Tax Reform

“This standard has the potential to treat virtually any common business relationship as an indicator of a joint employment relationship. In doing so, the new standard will expose businesses—especially small businesses—to potential liability for workers they do not actually employ and workplaces they do not actually manage. The Chamber strongly supports H.J.Res.98/S.J.Res.49.” — U.S. Chamber of Commerce

“By expanding the scope of unfair labor practice charges to which franchisors and franchisees can be subjected, union officials are handed more opportunities to trigger the Biden NLRB’s disastrous Cemex decision. In that case, the biased Biden NLRB stripped workers of their right to vote in a secret ballot election anytime their employer is found to have committed virtually any unfair labor practice. … The NLRB’s joint employer rule is a threat to workers across the country who do not want to be unionized, which is why the National Right to Work Committee supports H. J. RES. 98.” — National Right to Work Committee 

“Under this standard, a small business may be liable for another company’s employment law violations, and this broader standard has the potential to inflict serious harm to the small business community. NFIB strongly supports H.J.Res 98 and urges your support for this critical legislation.” — Jeff Brabant, National Federation of Independent Business (NFIB) 

“The NLRB should abandon this rulemaking and return to the 2020 rule, which provides a clear standard for companies to follow. This new rulemaking has not been properly justified, is a poor use of taxpayer funds, and will harm many businesses in a time of vast economic uncertainty.” — Nicholas Johns, National Taxpayers Union

“AHLA welcomes this Congressional Review Act resolution to overturn the NLRB’s disastrous joint-employer rule. The NLRB is intentionally taking a wrecking ball to one of Americas’ great economic engines—the franchise model—and jeopardizing millions of small business jobs.” — American Hotel and Lodging Association

“The Proposed Rule is overbroad, unnecessary and harmful. The changes contained therein will disrupt both existing and potential business relationships between retailers and their supply chain partners and contractors.” — David French, National Retail Federation  

“Radically expanding the ‘joint employer’ standard, which the NLRB recently advanced, is a severe blow to entrepreneurship across sectors – increasing costs, complexity and new barriers. SBE Council fully supports congressional action to prevent these harmful consequences, and utilizing the appropriations process to maintain the 2020 standard, which will protect local small businesses against the damaging outcomes of the 2023 NLRB rule.” — Small Business and Entrepreneurship Council

“RILA strongly supports the House Education and Workforce’s passage of the Congressional Review Act resolution to repeal the National Labor Relations Board’s (NLRB) damaging joint employer rule. This Congressional action is necessary given the significant overreach by the Board which will result in increased litigation, snarled retail supply chains and damage to the economy.” — Retail Industry Leaders Association

“With this joint employer rule, NLRB effectively imposes joint employer status on every contracting relationship, and America’s small businesses are the biggest losers. NLRB’s nebulous standard threatens the viability of the millions of small businesses that operate a franchise and the millions more small businesses that outsource to another business certain work, such as information technology or even janitorial or landscaping services. The joint employer rule especially threatens the American franchise system, which has long been a ticket to the middle class for anyone willing to put in the hard work. Concerned about lawsuits, franchisors will no longer be willing to franchise to unproven upstarts under this new standard.” —Alfredo Ortiz, Job Creators Network

“The expansive nature of NLRB’s joint employer rule would ensnare many trucking companies that contract with other employers to accomplish their work, making it more difficult for them to continue using this business model.  It represents another egregious assault on the freedom to start a small business and achieve the American Dream.  This restrictive standard guarantees widespread economic harm that will lead to lost jobs, less autonomy for small business owners, and fewer opportunities for aspiring entrepreneurs seeking to enter the trucking industry. ATA commends Congressman John James for leading this resolution that would overturn NLRB’s destructive rule, preserve flexibility for trucking businesses, and enable our industry to keep the supply chain moving.” — Bill Sullivan, American Trucking Associations 

“The Biden Administration’s radical Joint Employer Rule is a direct threat to the hundreds of thousands of small businesses operating as franchises across the United States. … It is clear that this rule will reduce entrepreneurship, kill jobs and stifle growth. Club for Growth urges all members to support H.J. Res 98 and rescind the Biden Administration’s assault on small business.” — Club for Growth

“This new rule will create confusion and chaos and will render many of these previously successful and effective business relationships and longstanding practices unsustainable. … H.J. Res. 98, if enacted, would not only prevent the rule from going into effect but would also prohibit a similar rule from being issued in the future. This CRA resolution of disapproval is critical to combatting this ill-advised rule and ensuring that the construction industry can continue its important work unimpeded. ABC urges a YES VOTE on H.J. Res. 98.” — Kristen Swearingen, Associated Builders and Contractors 

“On behalf of the Associated General Contractors of America (AGC) – representing over 27,000 construction firms in every state – I urge you and your colleagues to vote “YES” on the H.J. Res. 98. … Joint employer changes can disrupt long-standing standards in labor law and potentially change the way the construction industry operates in detrimental ways. The change could also have a particularly destabilizing impact on well-settled subcontracting practices in the construction industry, where critical issues such as safety and scheduling often dictate that a contractor have some say in how its subcontractors’ employees behave and have some oversight in their terms and conditions of employment.” — James V. Christianson, Associated General Contractors 

“This rule threatens the livelihood of IEC’s small electrical contractor members given that general contractors may choose to bring specialty trades in-house, to shield them from liability. This will negatively impact the industry and overall economy by increasing project costs and limiting small construction firms’ ability to create jobs and grow their business. … By enacting H.J. Res 98, Congress would restore commonsense and certainty for businesses to understand what it means to be a joint employer.” — Jason E. Todd, Independent Electrical Contractors