U.S. House Schedules Vote on Resolution Overturning Harmful Joint Employer Rule
WASHINGTON – Today, the U.S. House of Representatives announced plans to vote next week on H.J.Res.98, a Congressional Review Act (CRA) resolution overturning the National Labor Relations Board’s (NLRB) expanded joint employer rule. Led by Congressman John James (R-MI), the CRA is co-sponsored by 39 members of the U.S. Senate, and 68 members of the U.S. House of Representatives.
First introduced by a bicameral coalition on November 9, 2023, the House Education & Workforce Committee approved the resolution on December 12, 2023. It requires a simple majority to pass both chambers of Congress.
“We are grateful that the Congress is quickly taking up the joint employer issue,” said Michael Layman, Senior Vice President of Government Relations and Public Affairs of IFA. “With economic pessimism rampant, allowing this NLRB rule to stand would add further instability, imperiling franchisors and franchisees alike. We need Congress to stand up for small businesses whose livelihoods will be upended by this rule.”
Issued on October 26, 2023, the NLRB’s final rule expands joint employment between franchisors and franchisees. The rule provides a path for franchisors and franchisees to be deemed joint employers based on a new, vague definition of “indirect control.” It goes further than an Obama-era standard that cost franchises $33.3 billion each year, destroyed 376,000 jobs, and led to 93% more lawsuits.
Celebrating over 60 years of excellence, education, and advocacy, the International Franchise Association (IFA) 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 approximately 790,492 franchise establishments that support nearly 8.4 million direct jobs, $825.4 billion of economic output for the U.S. economy, and almost 3 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.