Local Businesses Support NLRB Proposed Rule on Joint Employer

WASHINGTON, Sept. 14—The Coalition to Save Local Businesses (CSLB), which represents a diverse group of locally owned, independent small businesses, associations and organizations, applauded today’s announcement from the National Labor Relations Board (NLRB) and its chairman, John F. Ring, that it is moving forward with proposed rulemaking on the joint employer standard.

“The CSLB and its members welcome the NLRB’s announcement for its promise of restoring common sense to the employer-employee relationship and bringing much-needed relief to small businesses,” said CSLB Executive Director Michael Layman. “Since the previous Board’s Browning-Ferris Industries (BFI) decision in 2015, which expanded the joint employer standard to include ‘indirect’ and ‘unexercised’ control, small businesses have faced an uncertain future, exposed to unlimited and unpredictable joint employment liability.”

As stated in today’s announcement, under the NLRB’s proposed new rule on joint employer, “an employer may be found to be a joint-employer of another employer’s employees only if it possesses and exercises substantial, direct and immediate control over the essential terms and conditions of employment and has done so in a manner that is not limited and routine. Indirect influence and contractual reservations of authority would no longer be sufficient to establish a joint-employer relationship.”

“We are encouraged that the NLRB recognizes the importance of providing clear, long-term rules for our nation’s employers on joint employer,” Layman continued. “The CSLB and its members thank Chairman Ring, as well as Board Members Kaplan and Emanuel, in proposing the new joint employer rule, and we look forward to participating in the upcoming public comment period and continuing our efforts to advance solutions to this misguided policy.”

In today’s notice, the NLRB announced that public comments would be accepted for consideration for the next 60 days. Comments may be made online at www.regulations.gov, or by mail or hand-delivery to Roxanne Rothschild, Deputy Executive Secretary, National Labor Relations Board, 1015 Half Street S.E., Washington, D.C. 20570-0001.