Chairman Williams, with Reps. Stauber, Meuser, Alford, and Bean Write to NLRB Regarding Recent Rule Change to Standard for Determining Joint Employer Status

Summary

A December 7, 2023 release stating that Congressman Roger Williams (R-TX), Chairman of the House Committee on Small Business, along with Reps. Stauber (R-MN), Meuser (R-PA), Alford (R-MO) and Bean (R-FL), wrote to Chairman Lauren McFerran of the National Labor Relations Board about a recent rule change to the Standard for Determining Joint Employer Status. An excerpt of the letter says the change expands the joint-employer definition under the National Labor Relations Act by allowing a joint employer finding based solely on indirect and unexercised control. The excerpt adds that it appears the NLRB may not have properly considered small entities during this rulemaking process.

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Full text

Chairman Williams, with Reps. Stauber, Meuser, Alford, and Bean Write to NLRB Regarding Recent Rule Change to Standard for Determining Joint Employer Status

December 7, 2023

WASHINGTON, D.C. – Today, Congressman Roger Williams (R-TX), Chairman of the House Committee on Small Business, along with Reps. Stauber (R-MN), Meuser (R-PA), Alford (R-MO), and Bean (R-FL), penned a letter to Chairman Lauren McFerran of the National Labor Relations Board (NLRB) regarding a recent rule change to the Standard for Determining Joint Employer Status.

This letter builds on the House Committee on Small Business’ work to ensure federal agencies adhere to the Regulatory Flexibility Act and Small Business Regulatory Enforcement Fairness Act to protect small businesses from burdensome regulations and rulemaking.

Read the full letter here.

Read excerpts from the letter below:

“The House Committee on Small Business (the Committee) writes to inquire about the National Labor Relations Board’s (NLRB) recent rule change to the Standard for Determining Joint Employer Status. This change expands the joint-employer definition under the National Labor Relations Act (NLRA) by allowing a joint employer finding based solely on indirect and unexercised control. Removing the current clear and predictable joint employer standards prevents employers from predicting the risks and costs of their contracts with providers, vendors, subcontractors, and franchisees. Beyond predictability, the rule expands liability to alleged joint employers which will almost certainly increase costs. It appears that the NLRB may not have properly considered small entities during this rulemaking process.”

Background:

Signatories include Chairman Roger Williams (R-TX), Rep. Pete Stauber (R-MN), Rep. Dan Meuser (R-PA), Rep. Mark Alford (R-MO), and Rep. Aaron Bean (R-FL).

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