Press Releases

WASHINGTON – – Today, Education and the Workforce Committee Chairwoman Virginia Foxx (R-NC) spoke on the House Floor in support of Rep. John James’ (R-MI) H.J. Res. 98, a Congressional Review Act resolution to nullify the National Labor Relation Board’s (NLRB) joint employer rule. This rule will impose unnecessary costs and liabilities on job creators, dissuade millions from pursuing the American Dream, and weaken America’s economic might.

Chairwoman Foxx's remarks (as prepared for delivery): 

"House Republicans are coming to the rescue of small business owners, once again.

"The House will soon vote on a bipartisan Congressional Review Act resolution to rescind President Biden’s anti-freedom, anti-growth joint employer rule.

"Business-to-business relationships are fundamental to American commerce. At its most basic level, a joint employer standard should ensure that the entity calling the shots in the workplace is legally liable. That’s why it’s important to get this right.

"Under the Trump National Labor Relations Board rule, it was right. The Trump NLRB made sure that clear criteria were met before an employer was deemed legally liable for an individual’s employment conditions.

"Critically, the Trump rule recognized that the ability of businesses to control their destinies is a pillar of the American Dream. It established a standard that enticed countless men and women to start and grow small businesses and employ millions of workers. 

"But the Biden NLRB unended this easy-to-understand joint employer standard that promoted economic growth and job creation. Under the new joint employer rule, small business owners are going to be compelled to acquiesce to more big government regulation and union boss control. 

"Here’s why:

"The traditional Trump rule stated that two or more businesses were considered joint employers under the National Labor Relations Act if they shared actual, direct, and immediate control over the essential terms and conditions of employment, including hiring, firing, discipline, supervision, and direction of employees.

"This predictable and clear standard ensured employers would not be saddled with collective bargaining obligations or with liability of a company they do not control.

"But under the Biden NLRB’s rule, an employer now includes those who have only indirect or even potential control over employees’ essential terms and conditions of employment. 

"And like a re-run of a low-rated TV show, we’ve seen this story before.

"While the Trump Board restored the common sense, traditional joint employer standard, the Biden NLRB’s rule largely revives an Obama-era standard. The Obama NLRB upended decades of precedent and broadly expanded the definition of joint employment. 

"That means working families and small businesses are up against a confusing and damaging new rule from Biden’s NLRB, which will sow confusion and destabilize the economy in a time where persistently high prices are crushing hardworking Americans. 

"The results from Obama’s joint employer rule give us an eerie glimpse of what’s to come:

"Franchise operational costs increased by $33 billion. The decision caused 376,000 lost job opportunities in the franchise sector alone. It increased NLRB unfair labor practice charges by 93 percent, imposing significant litigation costs on businesses both large and small.

"Special interests are hard at work attempting to sweep these facts and the failed historical record under the rug. The AFL-CIO purports that the rule will 'in no way threaten or disrupt franchise arrangements or staffing firms.' Big Labor set the line and the Biden administration took the bait—hook, line, and sinker.

"Moreover, this is not the only myth Big Labor is spreading about this resolution.

"Let me be clear: this resolution does nothing to restrict union activity. It does not alter the rights afforded to workers under the National Labor Relations Act. What it does is ensure the appropriate parties meet at the bargaining table to resolve labor disputes.

"While the Biden NLRB’s joint employer rule takes the side of its special interest masters, House Republicans have heard the pleas and are taking the side of workers, small businesses, and the American entrepreneurial spirit.

"Congress must stand with franchisees, small and large business owners, and millions of workers by voting with a bipartisan mandate to rescind the Biden NLRB’s joint employer rule."

Click here for a fact sheet on H.J. Res. 98.

###