Save Local Business Act fixes joint employer rule


By NFIB,

The National Federation of Independent Business (NFIB) sent a letter of support to the U.S. Senate and the U.S. House of Representatives supporting the Save Local Business Act, which will provide certainty for small businesses concerning the joint employer standard.

“Returning to a ‘direct-control’ joint employer standard will provide small business owners with the certainty they have historically enjoyed,” said Jeff Brabant, NFIB’s Senior Manager of Federal Government Relations. “This standard will make it clear to small employers when they may be liable for the actions of a subcontractor. We thank Sen. Roger Marshall (R-KS) and Congressman James Comer (R-KY-01) for introducing this important legislation.”

The Save Local Business Act will update the National Labor Relations Act (NLRA) and the Fair Labor Standards Act (FLSA) by returning the joint employer standard to a definition more closely aligned with historical interpretations by removing the term “indirect control” from the definition.

An employer may be considered a joint employer of a worker only if it “directly and…immediately” exercises control over the essential terms of conditions of employment. The terms and conditions include hiring, firing, determining pay, or supervising employees on a routine basis.