U.S. Representative James Comer (R-Ky.) has introduced the Save Local Business Act, aiming to clarify the joint employer standard and provide certainty for small business owners and workers nationwide. In recent years, small businesses have faced challenges due to expanded definitions of “joint employer” by the National Labor Relations Board (NLRB), leading to increased regulations.
“Congress must promote policies that empower small businesses and free them from stifling regulations pushed by an unchecked and unelected federal bureaucracy,” said Congressman Comer. “My bill, the Save Local Business Act, will add common sense to the definition of a joint employer, protect the franchise business model, and reduce bureaucratic headaches for American job creators. Now is the time for job growth and creation, not harmful and unclear regulations.”
The act has garnered support from various industry groups. Michael Layman, IFA Chief Advocacy Officer, emphasized its importance for franchise stability: “The Save Local Business Act provides much-needed stability to the franchise community on the issue of joint employer.” He highlighted that consistent standards are crucial for planning in the nation’s 831,000 franchise small businesses.
Rosanna Maietta, President & CEO of the American Hotel & Lodging Association, praised the bill’s potential impact on franchising within the hotel industry: “This bill will give them clarity they need to effectively run their business… Codifying ‘joint employer’ will ensure… more career opportunities in the hotel industry.”
Kristen Swearingen from Associated Builders and Contractors expressed support as well: “ABC is proud to support… which provides construction industry contractors with much-needed certainty when determining joint-employer status.”
Background information indicates that changes made by NLRB in 2015 affected working families and small businesses by altering hiring practices and other employment terms. The Obama administration’s expansion under FLSA blurred responsibilities between employers. This framework was later challenged during former President Biden’s tenure but struck down in court.
The Save Local Business Act seeks amendments to both NLRA and FLSA ensuring two or more employers have “actual direct immediate” control over employees before being considered joint employers while restoring traditional definitions promoting job creation without excessive oversight from bureaucrats or judges.
