Posts tagged Joint Employer rule
OPINION: Bidenomics Labor Agenda on the Rise in Time for 2024 Election
February 6, 2024 // This means entrepreneurs will lose the ability to open their franchise stores like a McDonald’s or Meineke auto shop. It also means many small mom-and-pop businesses like plumbing, baking, accounting and cleaning can’t perform mutually beneficial services for other businesses without being slammed by costly new regulations, legal threats and even targeted unionization efforts — not to mention the loss of their American Dream to have an independent business in the first place. In other words, more than 750,000 franchises and even more small businesses serving as contractors and vendors are now under threat, as are tens of millions of workers. The similar 2015 Browning-Ferris joint employer rule was estimated to increase costs by more than $33 billion and lead to 376,000 lost jobs for franchises, meaning the new rule in 2024 will be even more costly. Next, on January 10, the Labor Department published a final independent contractor rule that modifies the subfactors used in Labor’s “economic realities” test to create as many roadblocks toward independent contractor careers as Labor can without legislation.
Biden vows veto if Congress moves to repeal NLRB rule on contract, franchise workers
January 10, 2024 // The rule replaced a Trump-era regulation requiring companies to have "direct and immediate" control over workers in order to be considered joint employers, which was favored by business groups. "Reversing this rulemaking will prevent workers from exercising their right to bargain for higher wages, better benefits, and safer working conditions," the OMB said on Monday. "Too often, companies deny workers this right by hiding behind subcontractors, staffing agencies, and temporary agencies." The House Committee on Education and the Workforce approved the resolution for a vote last month. The federal Congressional Review Act allows Congress to repeal agency rules within 60 days of their adoption. The resolution only needs the support of a majority in the House and Senate to pass, but would require a two-thirds majority to overcome a Biden veto.
Opinion: NLRB says ‘common law’ — and common sense — defines joint employers
December 5, 2023 // The mandate, to take effect Dec. 26, says when two employers — think a local McDonald’s franchise and McDonald’s headquarters in Chicago — control a worker’s toil, from wages and hours to duties and work rules to hiring and firing to uniforms and training, then both are responsible for obeying or breaking Labor law. And that means it should be easier for workers to organize and bargain without being bounced from pillar to post when it comes to whom to bargain with. Using that same “basic common sense” explanation, AFL-CIO President Liz Shuler called the new rule “an important win” for workers.
U.S. labor board delays new unionization rule after business groups sue
November 20, 2023 // The U.S. Chamber of Commerce and other business groups — including the American Hotel and Lodging Association, the International Franchise Association and the National Retail Federation — sued the NLRB in federal court in Texas last week to block the rule. They say the rule upends years of precedent and could make companies liable for workers they don’t employ at workplaces they don’t own. But the NLRB says the current rule makes it too easy for companies to avoid their legal responsibility to bargain with workers.
New federal rule could allow millions of workers to more easily unionize at big companies
November 16, 2023 // The rule only applies to labor relations. The Department of Labor sets its own joint employment standards for issues like meeting minimum wage requirements. Still, the new rule could have a major impact. Local franchise owners employ more than 8 million people in the U.S., according to the International Franchise Association. Millions more work for subcontractors or temporary agencies.
Commentary: New Biden ‘Joint Employer’ regulation is a boon for unions
November 13, 2023 // In short, joint employment is a possible means for unions to organize major corporations all at once, rather than the piecemeal process of organizing workers at one location at a time. Incidentally, two of the board’s three Democrat majority members are David Prouty, former general counsel of the service employee union UNITE HERE, and Gwynne Wilcox, a former lawyer for the Service Employees International Union. Chairwoman Lauren McFerran served as a staffer of former Sen. Tom Harkin, a longtime union ally.
Op-Ed: Biden’s joint-employer rule is bad for workers
November 9, 2023 // Included in the Employee Rights Act are the commonsense provisions of the Save Local Business Act, which would provide much-needed clarity in determining joint-employer status and prevent franchise owners from becoming corporate middle managers. More specifically, the bills amend the National Labor Relations Act and the Fair Labor Standards Act to clarify that two or more employers must have “actual, direct, and immediate” control over employees to be considered joint employers. It rolls back a convoluted joint-employer scheme that threatens job creation and undermines the American dream, and it restores a commonsense definition of employer to provide certainty and stability for workers and job creators. Simply put, the Employee Rights Act seeks to update our nation’s labor policies to match the needs of the 21st-century worker and workforce.
NLRB joint-employer rule triggers fears of higher trucking costs
October 26, 2023 // In comments filed with the NLRB’s proposed rule last year, the American Trucking Associations was particularly concerned with including workplace safety and health as one of the determining conditions for a joint-employer relationship, given that many motor carriers have contractual provisions with other motor carriers that require compliance with federal health and safety standards. “This will, of course, necessitate a wholesale review of those contracts due to the accompanying risk associated with being deemed the employer of another’s employees — especially when there is no or limited ability to control those employees,” ATA stated.
Franchisors may be more liable for employees under broadened joint employer rule
October 26, 2023 // The National Labor Relations Board just issued a final labor rule that broadens the joint employer rule to make companies jointly liable with their franchisees for labor terms and conditions such as union contracts, pay, scheduling, and more, reviving an Obama-era rule that was limited in scope during the Trump Administration. Moving forward, franchisors will likely need to become more involved in creating and enforcing workplace policies, something that previously was left mainly up to franchisees. According to the National Labor Relations Board, this is a legal course correction back to the way the joint employer rule originally worked. Related: Appeal of McDonald's joint employer settlement denied by Labor board “The Board’s new joint-employer standard reflects both a legally correct return to common-law principles and a practical approach to ensuring that the entities effectively exercising control over workers’ critical terms of employment respect their bargaining obligations under the NLRA,” NLRB chairman Lauren McFerran said in a statement. “While the final rule establishes a uniform joint-employer standard, the board will still conduct a fact-specific analysis on a case-by-case basis to determine whether two or more employers meet the standard.” Trade organizations and business groups have pushed back against the ruling, with the National Restaurant Association and Restaurant Law Center, stating that it will “create chaos and legal questions” across the industry, as restaurants with franchisees try to figure out how to change their operational policies to fit the new rule. Related: NLRB to rule on joint employer status by summer “Today’s final rule on joint employer is a heavy blow to small business restaurant operators,” Sean Kennedy, executive vice president for Public Affairs at the National Restaurant Association said in a statement, adding that almost one-third of the restaurant industry would be affected by this rule. “The rule upends employment policy, adopting a far-fetched definition of ‘employer’ based on ‘indirect or potential influence’ of an employee and then fails to define how ‘indirect control’ will count toward a joint employer relationship.” The previous rule, which was finalized by the Department of Labor under the Trump administration in Jan. 2020, adopted a four-part test for assessing whether a company is a joint employer of another company’s workers, like the franchisor-franchisee relationship. Previously, companies were given joint employer status if they exercised “direct and immediate control” over the key terms of another organization's employees, like a franchisee. Now, that definition has been expanded to companies jointly classified as "sharing or co-determining” employment terms (like pay, scheduling, workplace rules, etc.).
Three New Regulations That Will Make It Harder to Serve the Needy
October 12, 2023 // In our Opportunity Playbook, we highlighted the Institute for the American Worker as an organization fighting for pro-labor policies that respect individual workers’ choices and freedom in the workforce. They join many others who are educating policymakers and regulators on how to ensure policies do not limit charitable organizations from serving communities.