CSLB: NLRB’s Joint Employer Reversal a Welcome Step for Local Businesses

WASHINGTON, Dec. 14 — The Coalition to Save Local Businesses (CSLB), which represents more than 3 million small businesses, organizations, and associations, applauded the National Labor Relations Board (NLRB) for its decision to revert to the joint employer standard in place prior to its 2015 decision in Browning-Ferris Industries (BFI).


“We applaud the NLRB for its Hy-Brand decision that reversed the joint employer standard invented through the 2015 BFI decision – a harmful, baseless decision that should never have been made in the first place,” said CSLB Executive Director Michael Layman. “While the Board’s Hy-Brand decision is a sensible next step in the process in which our members have been actively engaged since 2015, Congress enacting legislation remains the only way to provide permanent certainty to local businesses on both the NLRA and FLSA. We urge the Senate to build upon the progress we have seen in the House, with last month’s bipartisan passage of the Save Local Business Act, and act swiftly to codify this direct control standard.”


In August 2015, the NLRB promulgated its BFI decision that replaced the traditional “direct and immediate” control joint employer standard with an expanded rule based on “indirect, potential, or unexercised reserved” control – an action which resulted in uncertainty and an unpredictable liability standard for local businesses throughout the country. In its aftermath, local businesses also saw expanded joint employment liability under several other statutes, most notably under the Fair Labor Standards Act (FLSA).


The Save Local Business Act (H.R. 3441), which passed the House in November with significant bipartisan support, would update the National Labor Relations Act (NLRA) and FLSA to provide clarity for local businesses on what it means to be a “joint employer.” Together with its members and partners, the CSLB will continue working with the U.S. Senate to provide permanent relief to local businesses through the appropriate legislative process.


To learn more about the CSLB and the joint employer issue, click here.