NPMA Urging Congressional Action on 2015 "Joint Employer" Standard

Last week NPMA signed onto a letter sent by the Coalition for a Democratic Workplace (CDW) urging Congress to pass the Save Local Business Act, H.R. 3441. H.R. 3441 would overturn the 2015 National Labor Relations Board (NLRB) decision in Browning-Ferris Indus. of California, et al v. Sanitary Truck Drivers. (Browning-Ferris) to redefine the “joint employer” standard, greatly expanding liability for franchisees and subcontractors. The coalition pleads:

“The Board replaced the predictable and clear “direct and immediate control” standard for determining joint employer status with a vague test based on “indirect” and “potential” control over workers’ terms and conditions of employment. The decision has created immense uncertainty and undermined the relationships between a brand company and local franchise business owners, contractors and subcontractors, and businesses and their suppliers and vendors”

The Trump administration has subsequently nominated NLRB board members that would most likely overturn the 2015 ruling if given the opportunity, but that doesn’t necessarily fix the problem without Congressional action. NPMA will continue to work with the CDW to limit unnecessary joint liability for NPMA members and those that work with and for them.

For further information on the NLRB and the Browning-Ferris decision please click here for a summary drafted by NPMA in 2015.