NLRB Joint Employer Decision to Support Franchises

Congressman Henry Cuellar Texas Insider Report: WASHINGTON D.C. On Thursday of last week the National Labor Relations Board (NLRB) which oversees union elections and workplace disputes voted with a 3-2 majority to return to the pre-Obama era joint employer standard on Thursday. The ruling requires that employers must exercise direct control over employees in order to be held liable for complaints. For decades a joint employer was defined as a company that exercised direct and immediate" control over another companys workforce. However in August 2015 the NLRB departed from years of legal precedent by establishing a new expanded joint employer standard in which an employer could be held liable if they exercised vaguely defined indirect control over an employee. Congressman Cuellar introduced the Save Local Business Act this summer that would codify the NLRBs recent decision to revert the joint employer standard. It passed in the House in November and is currently being reviewed by the Senate.

Owning and maintaining a small business has been part of the American dream for generations" Rep. Henry Cuellar (D-TX) said. We must ensure that our small businesses and franchises receive fair treatment from the government instead of confusing arbitrary regulations that harm them. I have heard from small business owners throughout my district and the country and it is clear that the NLRBs joint employer decision was a major threat to the life of the franchise industry and to the dream of business ownership for millions of Americans. The Save Local Business Act will provide our nations small and franchise businesses with the certainty necessary to grow and invest in the future. I am glad to see the NLRB restore the traditional joint employer standard as the law of the land."

Congressman Henry Cuellar is a member of the U.S. House Appropriations Committee. Previously he served as a Texas State Representative and Texas Secretary of State.