Comments are due Dec. 7.
The National Labor Relations Board (NLRB) has proposed a new set of regulations that could have a significant impact on millions of small businesses and the tens of millions of workers they employ. NSBA believes that these rules--should they be enacted--would have a chilling effect on smaller businesses’ ability win contracts with larger firms for a range of services.
The rule also would significantly impact the ability of franchise owners to operate effectively.
Essentially, the NLRB proposal would make larger companies and franchisors responsible and liable for the employment practices of their franchisees, suppliers, vendors, contractors, and subcontractors.
Currently, businesses are only deemed to be “joint employers” if they exercise “direct and immediate control” over the essential terms and conditions of employment for the same group of employees.
The NLRB, however, wants to greatly expand that definition so that even the potential for such control will flip the joint-employer switch.
The changes proposed by NLRB would cause many larger companies to scale back their work with small businesses. Under this proposed rule, businesses will be forced to protect themselves against significantly more liability and obligations under the law.
These proposed rules would cause larger companies to bring much small-business work “in-house” rather than work with individually owned small companies. Ultimately, there will be fewer start-ups, lost innovation, higher costs, and a less vibrant entrepreneurial economy.
We need your help. Please help us send the message that this new joint-employer standard would devastate the small-business economy. Tell the NLRB to reverse course and protect small businesses. Comments are due Dec. 7!
