Americans for Tax Reform and the Center for Worker Freedom applaud the National Labor Relations Board’s decision to consider rulemaking to clarify the joint-employer standard under the National Labor Relations Act.
In 2015, the National Labor Relations Board (NLRB), whose members were appointed by President Barack Obama at the time, issued a decision in Browning-Ferris that has confused and harmed small businesses. That decision changed and expanded the definition of joint employer to include businesses that only have an indirect control over employees, dramatically increasing their liability. Unfortunately, the result has been that large businesses have tried to limit their liability by providing fewer services to their franchisees. These small businesses have suffered great harm as a result and have been unable to hire as many people.
The new standard also has confused businesses. Under this new standard, the Board determines case-by-case whether there is a joint employer. Under the previous standard of direct and immediate control, businesses knew if they were a joint employer.
Because of its harm to small businesses and employees, Americans for Tax Reform and the Center for Worker Freedom support changing the joint-employer standard back to direct and immediate control.