November 9th, 2023
Local Businesses Applaud Introduction of Congressional Resolutions to Overturn NLRB’s Flawed Joint Employer Rule
WASHINGTON – Michael Layman, senior advisor to the Coalition to Save Local Businesses (CSLB) released the following statement in reaction to the introduction today of a resolution of disapproval under the Congressional Review Act to overturn the National Labor Relations Board new joint employer rule:
“The NLRB’s unworkable joint employer rule will decimate small businesses at a time when so many Americans are already suffering in a challenging economy. We are grateful for the bipartisan leadership of U.S. Senators Bill Cassidy, M.D. (R-LA), ranking member of the Senate Health, Education, Labor, and Pensions (HELP) Committee, and Joe Manchin (D-WV), Senate Republican Leader Mitch McConnell (R-KY), Representative Virginia Foxx (R-NC), Chair of the House Education and Workforce Committee, Representative John James (R-MI), Speaker Mike Johnson (R-LA), and many other allies in Congress for standing up for millions of workers by introducing a resolution of disapproval to nullify the NLRB’s joint employer rule by using the Congressional Review Act. This resolution will give all members of Congress the opportunity to stand with small businesses from trucking companies to hardware stores to hair salons and auto body shops in their states and districts in the coming months, and the Coalition to Save Local Businesses will actively support this bipartisan effort.”
CSLB organized a letter of support from 60 diverse organizations in support of the House and Senate resolutions.
About Joint Employer: The NLRB’s final joint employer rule would expand the definition of joint employer, stripping small business owners of authority over their employees. This new joint employer rule expands on an old joint employer rule that destroyed 376,000 jobs, cost small businesses $33.3 billion, and led to a 93% spike in lawsuits in the franchise sector alone. Proposed in Sept. 2022, the expanded joint employer rule was finalized on Oct. 26, 2023 and will take effect on Dec. 26, 2023.
About the Congressional Review Act (CRA): “The CRA is a tool Congress can use to overturn certain federal agency actions…If a CRA joint resolution of disapproval is approved by both houses of Congress and signed by the President, or if Congress successfully overrides a presidential veto, the rule at issue cannot go into effect or continue in effect.” (Congressional Research Service, “In Focus: The Congressional Review Act: A Brief Overview,” 02/27/23)
The Coalition to Save Local Businesses represents thousands of local businesses and millions of American jobs through its membership and partner organizations. The coalition’s goal is to raise the voices of everyday Americans who own, operate, work for and depend on local businesses for their livelihoods.