Challenge to joint employer rule passed Senate in bipartisan vote
WASHINGTON — Last night the Senate passed a challenge to the new Biden rule that would negatively impact franchise businesses, an important part of the small business economy.
Thirty-two percent of small business owners say that they would not own a business without franchising.
“This rule would have an immediate, long-term negative effect on millions of workers and thousands of businesses,” Senator Braun said in his remarks on the Senate floor. “The National Labor Relations Board should not move forward with this joint-employer rule because it will have a negative economic impact and is inconsistent with common law.”
Democratic Senator Joe Manchin and Independent Senator Kyrsten Sinema joined the Republicans in passing the challenge.
Senator Mike Braun pioneered the use of the Congressional Review Act to challenge President Biden’s overreaching executive actions, including a challenge to protect Americans’ retirement savings from being politicized for a lower return on investment, and a bipartisan challenge that the Supreme Court noted was a significant factor in overturning Biden’s illegal vaccine mandate.
Senator Braun spoke on the Senate floor in favor of repealing the new Biden joint employer rule.
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The Joint-Employer rule has caused confusion for franchise owners for years.
This rule would have immediate and long-term negative effects on millions of workers and thousands of businesses at a time when the economy is already facing the highest inflation rates in four decades.
Franchises in particular would be negatively impacted should the proposed rule go into effect.
By moving forward with this misguided rule, the NLRB would hurt entrepreneurs who own their businesses in a franchise model.
Thirty-two percent of small business owners say that they would not own a business without franchising.
The NLRB should not move forward with this joint-employer rule because it will have a negative economic impact and is inconsistent with common law.
The Board should maintain the 2020 rule, which brought clarity and certainty to the business community.
Background on Joint Employer Rule
Addressing the Standard for Determining Joint-Employer Status under the National Labor Relations Act:
Under the new standard, an entity may be considered a joint employer of a group of employees if each entity has an employment relationship with the employees and they share or codetermine one or more of the employees’ essential terms and conditions of employment, which are defined exclusively as:
(1) wages, benefits, and other compensation;
(2) hours of work and scheduling;
(3) the assignment of duties to be performed;
(4) the supervision of the performance of duties;
(5) work rules and directions governing the manner, means, and methods of the performance of duties and the grounds for discipline;
(6) the tenure of employment, including hiring and discharge; and
(7) working conditions related to the safety and health of employees.
