NEWS | House Panel Moves Resolution to Block NLRB Joint Employer Rule

Congress is working to create regulatory authority oversight for the NLRB.

A resolution to overturn the National Labor Relations Board’s (NLRB’s) new joint-employer rule advanced through a House panel as businesses carry on a major lobbying campaign to block the regulation.

The Committee on Education and the Workforce voted 25-20 on Tuesday to approve the resolution (H.J. Res. 98), which allows lawmakers to undo agency rulemaking in certain circumstances.

The NLRB’s new joint-employer  regulation set to take effect in February adjusts regulations for employers for multiple companies to be jointly liable for labor law violations.

The rule has faced fierce opposition on the Hill from Republicans and some Democrats. The resolution now heads to the House floor, where passage is likely. 

In the Senate, Sen. Joe Manchin (D-W.Va.) has ardently opposed the NLRB rule, and Sen. Kyrsten Sinema (I-Ariz.) has also indicated she may vote to block it, raising the prospects that the resolution will pass Congress.

However, the resolution is vulnerable to a presidential veto and could be rejected by President Joe Biden.

Opponents of the rule have said it could harm jobs and dramatically increase costs to employers and consumers. Some senators have also said the labor board’s move could have a negative impact on older Americans by raising regulatory costs for senior living facilities that often contract out work to service providers—and would be considered joint employers under the rule.

Follow NSBA as we continue tracking this change from the NLRB on Capitol Hill and across Washington.