CSLB: Senate Action On Joint Employer Would Provide Needed Clarity To Local Businesses

WASHINGTON, Feb. 15 — The Coalition to Save Local Businesses (CSLB), which represents a diverse group of locally owned, independent small businesses, associations and organizations, sent a letter today to U.S. Senate Leaders Mitch McConnell and Charles Schumer urging the Senate to take immediate steps to reverse the burdensome joint employer regulation that continues to present growing harm to businesses throughout the United States.

The letter, signed by members of the CSLB, including the International Franchise Association, American Hotel & Lodging Association, National Restaurant Association, National Retail Federation, and the U.S. Chamber of Commerce, and others, urges the U.S. Senate to consider the bipartisan House-passed “Save Local Business Act,” saying:

“The undersigned associations representing millions of job creators in every industry and sector of our nation’s economy urge the U.S. Senate to address the growing confusion and harm to our economy caused by the lack of legislative definitions for “joint employer” in the National Labor Relations Act (NLRA) and the Fair Labor Standards Act (FLSA). We recommend that the Senate take up the House-passed “Save Local Business Act” (H.R. 3441) as soon as practicable.”

The letter also references the complications that exist, notably in the judicial system, as a result of the National Labor Relations Board’s joint employer expansion:

“Under the FLSA, there are currently as many as eight different federal circuit court definitions for joint employment. Complicating the matter, the U.S. Supreme Court recently declined to hear a case that would have addressed this issue, thus eliminating the possibility of a judicial solution. Without a unified national definition, businesses operating in multiple federal circuits will face varying interpretations of what it means to be a joint employer under the FLSA.”

To view the letter in its entirety, click here.

To learn more about the Coalition to Save Local Businesses and the joint employer issue, click here.