ATR and CWF Support the Save Local Business Act

Posted by Olivia Grady on Friday, October 6th, 2017 at 2:23 pm - Permalink

Americans for Tax Reform and the Center for Worker Freedom on Tuesday joined the Competitive Enterprise Institute (CEI) and 26 other free market groups in supporting the Save Local Business Act (H.R. 3441).

The free market groups sent a letter to Members of Congress, urging them to pass this bill, which is sponsored by Representative Bradley Byrne (R-AL) and co-sponsored by 95 Representatives.

The bill amends the definition of joint employer in the National Labor Relations Act and the Fair Labor Standards Act of 1938 to read:

“A person may be considered a joint employer in relation to an employee only if such person directly, actually, and immediately, and not in a limited and routine manner, exercises significant control over the essential terms and conditions of employment (including hiring employees, discharging employees, determining individual employee rates of pay and benefits, day-to-day supervision of employees, assigning individual work schedules, positions, and tasks, and administering employee discipline).”

This definition is similar to the original definition of joint employer before the National Labor Relations Board (NLRB) changed it in 2015. The NLRB expanded the definition when it decided the Browning-Ferris Industries case on August 27, 2015. This decision hurt small businesses and employees.

The letter correctly states the problem with the NLRB’s expanded definition of joint employer:

“A policy that makes businesses liable for the practices of their contractors and will cause companies to make changes that leave people worse off, such as ending those relationships with smaller businesses. That means fewer job opportunities, fewer opportunities for entrepreneurs, and fewer chances for American businesses to grow and create jobs.”

In fact, the American Action Forum estimates that the expanded joint employer standard could mean 1.7 million fewer jobs.

Americans for Tax Reform joins CEI and the other groups in urging Congress to quickly change this job-killing standard.

Click here to view the letter.

Image: Representative Bradley Byrne