January 13, 2026
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National Taxpayers Union, the nation’s oldest taxpayer advocacy organization, urges all members to vote “YES” on H.R. 4366, the Save Local Business Act, authored by Representative James Comer (R-KY). This legislation protects the franchise business model by clarifying the joint employer standard, thereby providing certainty for small business owners and workers across the country.
Franchises allow entrepreneurs to grow proven business models while maintaining control over their own operations and employees, creating jobs and driving economic growth on a national scale. According to a 2024 report by the International Franchise Association, 821,000 franchise establishments provided jobs for 8.9 million workers and generated nearly $894 billion in economic output. Yet, heavy-handed and inconsistent rules from Washington are putting this thriving business model at risk, creating uncertainty for franchise owners and their employees.
Over the past decade, the National Labor Relations Board (NLRB) has expanded what is called the “joint employer” standard. This change means that both the franchisor and the franchisee can be held responsible for the same workers, blurring the clear line of responsibility that has always made the franchise model work so well. Instead of having the freedom to make their own decisions about hiring, training, and running their day-to-day operations, franchisees are left facing legal uncertainty. That confusion doesn’t just weigh on business owners; it trickles down to employees too, who lose the stability and clarity that come with working for a locally-run business.
The 2015 standard issued by the NLRB cost franchise businesses over $33 billion per year, resulted in 376,000 lost job opportunities, and led to 93% more lawsuits. To top it all off, the whipsaw effect of different administrations issuing different rules in a partisan back and forth leaves small business owners unable to plan ahead.
The Save Local Business Act offers a solution to this problem by codifying a permanent and clear joint employer standard for franchises. This legislation would clarify that a franchisor may be considered a joint employer of the employees of a franchisee only if the franchisor possesses and exercises “actual, direct, and immediate” control over one or more essential terms of employment. This straightforward standard would provide the small business community with the clarity and predictability needed to comply with the law and plan for the future.
Roll call votes will be included in NTU’s annual Rating of Congress and “YES” votes will be considered the pro-taxpayer position.
If you have any questions, please contact NTU Policy and Government Affairs Manager Alexander Ciccone at aciccone@ntu.org
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