Posts tagged Joint Employer rule
Commentary: Biden pursues organized labor’s agenda through regulation
March 14, 2024 // The OSHA “walkaround” rule flies in the face of a regulation that stipulates that people who accompany an OSHA inspector must be employed by the company under inspection. Under the proposed rule, OSHA representatives would have to simply state that a union official was “reasonably necessary” to the inspection to bring that individual to the site. The walk-around rule presents an opportunity for union organizers to collect information or otherwise infiltrate nonunion workplaces, a clear attempt by OSHA to give unions a leg up in organizing drives. Another example is the Securities and Exchange Commission’s universal proxy rule, which forces companies to include management and dissident shareholder nominees on a single proxy card in contested elections. The rule enabled a coalition of our nation’s largest and most militant unions to extract new concessions from Starbucks by threatening to mount a hostile takeover attempt of the coffee company’s board. Unions will continue to exploit the universal proxy rule to bring other publicly traded companies to the table with threats of a hostile takeover.
In Win for Franchises, Judge Voids Biden Admin NLRB Joint Employer Rule
March 11, 2024 // The judge’s decision provided a hypothetical example, in which an ice cream shop, IceCo, contracts with a lawn service, MowCo, to tend the lawn of the shop once a week. The mere fact that IceCo has a contract with MowCo that allows IceCo to refuse the use of certain fertilizers would, under the 2023 rule, cause IceCo to be considered a joint employer of the MowCo employee who mows IceCo’s lawn because IceCo has the reserved right to control a component of the employee’s “health or safety.”
Beware the labor regs of March!
March 11, 2024 // A new rule from the federal government meant to protect workers is set to take effect today, March 11. It will instead leave most workers worse off by limiting their options for employment. Businesses will likely pull back from hiring entirely in many cases because the rules make it too risky. The rulemaking in question is the Labor Department’s (DOL) worker misclassification rule. The stated intent is to prevent situations where employers exploit workers. The rule is extremely vague on when business activities trip the line to exploitation however. DOL essentially leaves it up to federal regulators to decide. The rules won’t change things overnight. Regulators will still have to pursue cases based on them and court fights are sure to follow. But today is the day the mischief will officially start.
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.