Save Local Business Act Would Rein in ‘Joint Employer’ Standard

by | Sep 26, 2017

The Save Local Business Act would restore the language used to determine when one business should be considered responsible for the labor practices of another.

A U.S. House subcommittee recently introduced the Save Local Business Act, which would roll back the Obama administration’s expanded definition of “joint employer” under the National Labor Relations Act and Fair Labor Standards Act.

The legislation, sponsored by Bradley Byrne (R-Ala.) with the bipartisan support of 29 co-sponsors, would restore the language used to determine when one business should be considered responsible for the labor practices of another, protecting businesses from unnecessary involvement in labor negotiations and disputes involving workplaces in which they do not have direct control.

Business groups including Associated Builders and Contractors say the changes undermined the relationships between brand companies and their local franchise business owners; contractors and subcontractors; and businesses and their suppliers and vendors.

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