House to Vote on Joint Employer Bill Next Week

November 03, 2017

The House will vote on an HR Policy-supported bill next week that clarifies the definition of who is a "joint employer" under the Fair Labor Standards Act and the National Labor Relations Act.  The Save Local Business Act (H.R. 3441) would reverse the NLRB's controversial decision in Browning-Ferris, which expanded joint employer liability to include situations where one company has the "potential" to influence the employment conditions of a separate company.  The bill also creates a uniform definition of joint employer under the FLSA (Circuit Courts have various standards) and provides certainty and stability for workers and employers by requiring that a company exert "direct, actual and immediate" control of workers to be considered their employer.  The issue affects numerous situations involving more than one company, including franchising, outsourcing, and the use of staffing agencies.  Lead sponsor Rep. Bradley Byrne (R-AL) said: "H.R. 3441 simply restores the commonsense joint employer standard that workers and employers relied on for decades."  The legislation, which has 123 cosponsors in the House, including three Democrats, is likely to pass the House but will require 60 votes to pass the Senate.  HR Policy has testified in support of a legislative solution to the problem and will join business community efforts to support House passage.  If your company is interested in getting involved in the effort, contact E.R. Anderson at eranderson@hrpolicy.org.