Last week, HCAOA submitted an official comment opposing the proposed rule the National Labor Relations Board has developed to revise the “joint employer” rules adopted in 2020 that outline when an employee of one company could be found to also be the employee of another, seemingly unrelated company.
HCAOA’s comments (click here to read) said the revisions would make the rule too ambiguous and expand the joint-employer concept far beyond what current law recognizes.
Additionally, the proposed rule would interfere with the employer/employee relationship and significantly expand potential joint liability for unfair labor practices and breaches of collective bargaining agreements.
There are a number of other constituents and senators arguing that the proposed rule is a bad idea. A bipartisan group of Senators, led by Senators Mike Braun (R-IN) and Joe Manchin (D-WV), sent a letter to National Labor Relations Board Chairman Lauren McFerran urging the Board to reconsider the rule due to the potential negative impact on the franchise model. Senators Sinema (I-AZ), King (I-ME), Lankford (R-OK), and Collins (R-ME) also signed the letter.
Senator Braun also led another letter with Rep. Virginia Foxx (R-NC) and 65 other GOP lawmakers in opposition to the proposed rule. In the letter, the lawmakers said, “Due to this negative economic impact, the proposed rule's inconsistency with common law, and the NLRB's attempt to use powers reserved to Congress, we urge the Board not to move forward with its proposed rule for determining joint-employer status. Instead, the Board should maintain the 2020 rule, which brought clarity and certainty to the business community.”
HCAOA will continue to monitor the proposed rule as well as any changes and will advocate for members.