FOR IMMEDIATE RELEASE
August 7, 2017
CONTACT:
Ryan Williams 202-677-7060

 IN CASE YOU MISSED IT

 America’s Workers, Job Creators Need The Save Local Business Act

 Heather Greenaway
August 4, 2017
The Hill

During the eight years of the Obama administration, the National Labor Relations Board (NLRB) rolled out a series of anti-business policies that hurt workers and job creators alike. Few of these acts were more depredating for employees and employers than the NLRB’s new joint employer standard.  The misguided policy upended decades of labor law representing a direct and existential threat to the franchise industry, forcing job creators to take responsibility for measures far beyond their control, ultimately hurting workers at the behest of big labor bosses.

Before the new joint employer standard, businesses were only liable for employment violations that occurred in workplaces under their “direct control.”  By enforcing a new standard, the liability was expanded to workplaces under their “indirect control,” meaning a business or company could be found liable in a variety of different situations, such as when it contracted work to a completely separate entity.

The NLRB’s new joint employer standard meant franchises, which create great economic mobility as they provide ambitious entrepreneurs with pre-packaged business models and concepts, were at risk of never opening their doors, or worse yet, closing them altogether.

According to the International Franchise Association, franchises generate $674 billion in economic impact and are responsible for more than 7.6 million jobs. For such a large economic driver, government should take great care before promulgating burdensome regulations costing employees – in many cases most in need – their jobs.

Thankfully, despite the current political divide in Washington, lawmakers on both sides of the aisle are unified in their opposition to the NLRB’s reckless joint employer agenda. Democratic Reps. Lou Correa (Calif.) and Henry Cuellar (Texas) joined with Republican Reps. Virginia Foxx (N.C.), Tim Walberg (Mich.), and Bradley Byrne (Ala.) to oppose the new joint employer standard.

By introducing HR 3441, The Save Local Business Act, this bipartisan group of elected officials has taken a proactive step toward restoring workers’ rights.

It is no surprise that among the few supporters of the new joint employer standard are union bosses, who pumped millions of dollars into President Obama’s campaigns, expecting and receiving payback in the form of anti-worker and anti-business actions undertaken by a supposed independent agency.

Byrne, who introduced the legislation to end the new joint employer standard, aptly stated, “The people who own these fast food franchises, they’re big time members of our community. They’re the ones we go to get sponsorships for the little league. They’re the ones participating in the Chamber of Commerce.” Thus, the joint employer standard is not a regulation reining in big business, but rather a massive hurdle for small business owners making meaningful impacts in communities across the nation.

The law would amend the National Labor Relations Act and Fair Labor Standards Act to clarify that two or more employers must have “actual, direct and immediate” control over employees to be considered joint employers. In effect, this bill would free national franchise organizations from liability in their local chains, which set their own hours and policies.

Labor Secretary Alexander Acosta withdrew the Department of Labor’s “informal guidance” on the new joint employment standard; however, the NLRB has not rescinded it, meaning it still could be applied.

Heather Greenaway is a spokesperson for the Workforce Fairness Institute (WFI), which advocates on behalf of business owners.

To access the op-ed, click here.

The Workforce Fairness Institute is an organization committed to educating voters, employers, employees and citizens about issues affecting the workplace.  To learn more, please visit: https://www.workforcefairness.com.

 To schedule an interview with a Workforce Fairness Institute representative, please contact Ryan Williams at (202) 677-7060.

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AZ Daily Sun--Coconino Voices: PRO Act legislation would hurt local businesses

— 05.13.2021 —
By: Julie Pastrik Arizona businesses and workers have had an incredibly challenging year given the economic slowdown that followed in the wake of the coronavirus pandemic. However, local businesses and industries across the state are resilient and on the road to a strong recovery that will mean more jobs for Arizona workers and increased economic development to strengthen our communities. That is, as long as Congress does not move forward with potentially devastating legislation that would hurt local employers and employees alike while impeding our state’s economic recovery. Unfortunately, some members of Congress seem determined to do just that by pushing through the Protecting the Right to Organize (PRO) Act. As harmless as the name may sound, the PRO Act would have serious repercussions for local businesses, particularly smaller ones, while undermining long-standing rights for employees and threatening the growing gig economy that has helped provide much-needed income for so many during this time. Arizona is fortunate to have leaders like Senators Mark Kelly and Kyrsten Sinema, who have both refrained from joining the vast majority of their Democratic colleagues in cosponsoring the PRO Act. In a slap in the face to Arizona workers, the PRO Act removes one of the most fundamental rights a worker has when it comes to voting in elections to determine whether to unionize: the secret ballot. Instead, workers could be forced to sign union authorization cards in front of other employees, their employer, or union organizers. This bill would also destroy workers’ right to privacy by allowing unions access to personal information, including their home address and personal phone number. If that doesn’t open the door to union intimidation and harassment, I don’t know what does. As if that was not bad enough, the PRO Act would create major new challenges for Arizona businesses, making it harder for them to create jobs, expand in their communities, and even keep their doors open. It would redefine what it means to be a “joint employer” under national labor law, greatly complicating existing relationships between franchisors and franchisees as well as between business owners, contractors, subcontractors, and vendors and suppliers. At the same time, it would interfere with attorney-client confidentiality and make it much more difficult for small businesses to secure a legal advice on labor issues. Particularly harmful during these times, the PRO Act would apply a failed policy from California to national labor law by using the “ABC” test to determine whether a worker is an independent contractor or employee. This makes it much harder to qualify as an independent contractor, threatening the freedom and flexibility that tens of thousands of Arizonans find in independent contracting and gig economy work. Ultimately, the PRO Act is bad public policy that only works for union leaders to inflate their falling ranks while threatening workers’ rights, undermining small businesses, and jeopardizing a growing part of our economy. This is not a good solution for Arizona, and Senators Sinema and Kelly should stay firm and not cosponsor this misguided legislation.
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