Nineteen States Have Acted To Provide Clarity To Workers & Employers Through Joint Employer Legislation

Local Business Leaders Urge Passage of Save Local Business Act at Federal Level

WASHINGTON, Oct. 26— In letters sent today to members of the U.S. House of Representatives and U.S. Senate, local business leaders from throughout the United States are urging Congress to follow their states’ leads in passing legislation to address the expanded joint employer standard.

The letters urge Congressional action, saying: “While our new state law is a constructive development, unfortunately it is still preempted by the National Labor Relations Act. What’s worse, other federal agencies like the Wage and Hour Division and others have capitalized on the NLRB’s overly broad joint employment precedent to pursue small business owners under statutes in their jurisdictions. Therefore, franchise business owners urge you to stand up for them by working with your colleagues to pass [the Save Local Business Act] H.R. 3441 in Congress that would simply and sensibly restore the long-standing, traditional definition of joint employment based on ‘actual, direct, and immediate’ control of employees.”

“Franchise business owners and constituents from across the country have seen their state legislatures act to protect their local businesses from the impact of expanded joint employment liability, however state law is preempted by federal labor laws, so no real relief is coming their way until Congress passes Congressman Byrne’s H.R. 3441,” added Michael Layman, vice president of federal government relations for the International Franchise Association.

The lead sponsor of H.R. 3441, Congressman Bradley Byrne (R-AL), commended local business leaders for their continued efforts to inform policymakers about the impact of the expanded joint employer rule, and urged his colleagues to pass this legislation.

“State legislatures in Alabama and many other states have enacted laws to protect locally owned businesses from expanded joint employer liability because they recognize how confusing and harmful it has become for franchise business workers and owners,” said Byrne. “But these good state laws do not override the recent changes to federal labor law that have bewildered small businesses. Today, scores of job creators from across the country are calling for passage of my bill, the Save Local Business Act, and I remain optimistic that Congress will respond to this groundswell.”

In addition to these letters of support, CSLB partners and members have been leading efforts to encourage Congress to clarify the National Labor Relations Board’s expanded definition of joint employer, including the following:

  • 28 CSLB witnesses have testified before Congress sharing their small business stories and describing how joint employer is impacting their businesses and employees.
  • 100+ in-district meetings have been held with Members of Congress and their local business communities to discuss joint employer.
  • 117,000+ letters have been sent to Congress expressing confusion and asking for clarity in the aftermath of the expanded joint employer rule.

To read one of the letters, click here.