Congressional lawmakers introduced a Congressional Review Act (CRA) resolution to overturn the National Labor Relations Board's (NLRB's) new joint employer rule. The final rule, released on Oct. 26, provides a broadened standard for when two employers that conduct business together are considered to be joint employers and thus liable for one another's unfair labor practices. The rule is slated to take effect Dec. 26.
U.S. Reps. John James, R-Mich., Virginia Foxx, R-N.C., and Speaker Mike Johnson, R-La., joined U.S. Sens. Bill Cassidy, R-La., Joe Manchin, D-W.V., and Mitch McConnell, R-Ky., to oppose the rule.
In a joint statement, they said the rule jeopardizes the franchise business model by giving franchisers extra liability. They said the rule creates legal uncertainty for small and local businesses, leading to higher operational costs and less opportunity to create jobs.
The rule "will destroy the business model that has helped countless men and women achieve the American Dream," Foxx said. "It means higher costs for consumers and fewer jobs for workers."
The rule "is an attack on Main Street America, as it will destroy countless livelihoods. It will leave small business owners and working Americans with less freedom and less autonomy to run their own businesses and lives," Johnson said.
In public comments, the National Federation of Independent Business in Washington, D.C. said the rule will lead franchisers to require more stringent and expensive franchising...
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