Trade groups push Congress to reverse NLRB joint employer ruling

More than 50 business and trade groups are asking Congress to pass legislation to repeal the National Labor Relations Board’s (NLRB) new joint employer standard.

In August 2015, the NLRB ruled that “indirect” and “potential” control over workers’ terms and conditions makes a company a joint employer.

{mosads}In a letter to members of the House Education and Workforce Committee Tuesday, the groups — including the International Franchise Association, the National Restaurant Association and the National Retail Federation — said the rule change has exposed a broad range of businesses, from contractors and subcontractors, to franchisors and franchisees, to workplace liability for another employer’s actions and for workers they do not employ.

And they say the NLRB won’t be reversing the new standard any time soon.

“The president can nominate two new board members, but those nominees will require Senate approval, which takes time,” the groups wrote in their letter. “After new members are confirmed to the Board, it will take more time for an appropriate case to develop so the Board can restore the ‘direct control’ joint employer standard.” 

Even then, they said, the decisions could be overturned by future administrations.

Their letter comes ahead of a hearing the House Education and the Workforce Subcommittee on Health, Employment, Labor, and Pensions has planned for Tuesday to discuss how to make the NLRB a fairer board.

Critics have long accused the NLRB of favoring unions over businesses.