U.S. Senate passes challenge to joint employer rule in bipartisan vote

On Wednesday night, the U.S. Senate passed a challenge to the new Biden Administration rule that many say will negatively impact franchise businesses, an important part of the small business economy.

Thirty-two percent of small business owners say that they would not own a business without franchising.

“This rule would have an immediate, long-term negative effect on millions of workers and thousands of businesses,” Senator Mike Braun (R-Ind.) said in his remarks on the Senate floor. “The National Labor Relations Board should not move forward with this joint-employer rule because it will have a negative economic impact and is inconsistent with common law.”

Senators Joe Manchin (D-W.V.) and Kyrsten Sinema (I-Ariz.) joined the Republicans in passing the challenge.

Sen. Braun pioneered the use of the Congressional Review Act to challenge what he says are President Biden’s overreaching executive actions, including a challenge to protect Americans’ retirement savings from being politicized for a lower return on investment, and a bipartisan challenge that the Supreme Court noted was a significant factor in overturning the president’s vaccine mandate.

Click here to listen to Braun’s remarks in favor of repealing the new joint employer rule.

Background

Addressing the Standard for Determining Joint-Employer Status under the National Labor Relations Act:

Under the new standard, an entity may be considered a joint employer of a group of employees if each entity has an employment relationship with the employees and they share or codetermine one or more of the employees’ essential terms and conditions of employment, which are defined exclusively as:

(1) wages, benefits, and other compensation;

(2) hours of work and scheduling;

(3) the assignment of duties to be performed;

(4) the supervision of the performance of duties;

(5) work rules and directions governing the manner, means, and methods of the performance of duties and the grounds for discipline;

(6) the tenure of employment, including hiring and discharge; and

(7) working conditions related to the safety and health of employees.