NTU urges all Representatives to vote “YES” on H.R. 3441, the “Save Local Business Act of 2017.” This bipartisan legislation would reverse an Obama-era National Labor Relations Board (NLRB) rule that expanded joint-employer liability for franchise businesses.
Data shows the NLRB rule continues to have a negative impact on the franchise industry, one of the most dependable sources of job creation. American Action Forum estimates that this rule could result in 1.7 million fewer jobs in the private sector, with 500,000 of those losses in the leisure and hospitality industry. Such drastic job loss will further strain taxpayer funds by necessitating greater expenditures on programs like unemployment insurance, Medicaid, and housing assistance.
H.R. 3441 simply restores the joint employer standard that businesses and workers relied on for decades. Specifically, an employer can only be considered a joint employer if they directly exercise significant control over the main elements of employment, such as hiring, firing, wage determination, or supervision of an employee’s day-to-day activities. Reverting back to the previous rule will provide much needed clarity to America’s 770,000 franchise businesses and nearly 8.5 million workers. NTU strongly supports removing regulations that cause significant and unnecessary financial damage to businesses and limit job opportunities for workers.
Roll call votes on H.R. 3441 will be included in our annual Rating of Congress and a “Yes” vote will be considered the pro-taxpayer position.
If you have any questions, please contact NTU Policy and Government Affairs Associate Thomas Aiello at (703) 299-8680