Alabama 1st District U.S. Rep. Bradley Byrne introduced legislation Thursday to protect America’s local businesses by restoring the commonsense definition of what it means to be an employer, protecting companies from being held liable for labor law violations made by their subcontractors.
H.R. 3441: The Save Local Business Act, endeavors to undo an Obama-era standard in which the National Labor Relations Board (NLRB) expanded the joint employer standard and thus increased businesses’ exposure to lawsuits and unionization efforts. Byrne’s bill would amend the National Labor Relations Act and the Fair Labor Standards Act to clarify that two or more employers must have “actual, direct, and immediate” control over employees to be considered joint employers.
It would:
- Roll back a convoluted joint employer scheme that threatens job creation and undermines the American Dream.
- Restore a commonsense definition of employer to provide certainty and stability for workers and employers.
- Protect workers and local employers from future overreach by unelected bureaucrats and activist judges.
“Federal labor policies should be focused on benefiting workers and helping small businesses grow instead of creating barriers that limit opportunity. Also important, Congress – not unelected federal bureaucrats – should set our nation’s labor policies through statute instead of executive fiat,” said Byrne. “Under this bipartisan legislation, workers, and the businesses they work for, will be given much needed clarity and certainty. I am especially pleased our legislation has earned support from both sides of the aisle, and I am committed to continuing to build momentum as the bill moves through the legislative process.”
The bill has bipartisan support from 29 co-sponsors, including House Education and the Workforce Committee Chairwoman, North Carolina Republican Rep. Virginia Foxx.
“Right now, local employers across the country face an enormous amount of uncertainty because of a vague and confusing joint employer standard,” commented Foxx. “Congress cannot sit on the sidelines while this harmful scheme threatens to destroy jobs and make it harder for entrepreneurs to achieve the American Dream of owning a business. I commend Congressman Byrne for his leadership in this bipartisan effort to protect jobs and the spirit of entrepreneurship in local communities.”
