Federal Court can Save American Jobs by Reigning in Fouled NLRB Joint Employer Standard
FOR IMMEDIATE RELEASE
FEDERAL COURT CAN SAVE AMERICAN JOBS BY REIGNING IN FOULED NLRB JOINT EMPLOYER STANDARD
WASHINGTON, March 8—As a federal appeals court in Washington, D.C. prepares to hear oral arguments in one of the most controversial decisions ever issued by the National Labor Relations Board (NLRB) in the Browning-Ferris Industries (BFI) case this week, the International Franchise Association continues to advocate in Congress about the negative consequences the NLRB’s limitless new standard for joint employment is having on franchised businesses and the overall U.S. economy.
“The NLRB opened a can of worms in Browning Ferris. Multiple other federal agencies, state Attorneys General and the plaintiffs’ bar have gotten in on the act by holding companies liable for personnel they don’t actually employ. Thereby raising troubling questions about issues as fundamental as, ‘who am I employing in my business’ or ‘who is my employer.’ This overreach is threatening American jobs and the viability of small businesses,” said IFA President & CEO Robert Cresanti, CFE. “We are hopeful that a ruling against the NLRB will chill efforts to adopt the board's joint employer standard elsewhere, while IFA and others continue to encourage the Trump Administration to repeal joint employer guidance at the Department of Labor and pursue a legislative solution in Congress.”
In August 2015, the NLRB ruled that BFI was a “joint employer” with a staffing agency, and in doing so, overturned decades of precedent regarding employee liability. By finding BFI to be a joint employer, the NLRB replaced a standard based on direct and immediate control with an amorphous standard based on indirect and potential control.
Last year, IFA, along with other business associations, filed an amicus brief in support of BFI in its case against the NLRB. The brief notes that although BFI is a waste management company, “...the potential control and indirect control standards announced in BFI are broad enough to cover virtually any business relationship, and the murky guidance provided in the majority opinion makes it virtually impossible for businesses to apply the new standard with any confidence as to whether they are getting it right.”
About the International Franchise Association
Celebrating 56 years of excellence, education and advocacy, the International Franchise Association is the world's oldest and largest organization representing franchising worldwide. IFA works through its government relations and public policy, media relations and educational programs to protect, enhance and promote franchising and the more than 733,000 franchise establishments that support nearly 7.6 million direct jobs, $674.3 billion of economic output for the U.S. economy and 2.5 percent of the Gross Domestic Product (GDP). IFA members include franchise companies in over 300 different business format categories, individual franchisees and companies that support the industry in marketing, law, technology and business development.
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