Senator David Perdue Cosponsors Bill to Roll Back Burdensome NLRB Regulation

WASHINGTON, D.C. – U.S. Senator David Perdue (R-GA) recently co-sponsored the Protecting Local Business Opportunity Act, legislation to roll back the National Labor Relations Board’s “joint employer” regulation, which directly impacts American workers, our nation’s 780,000 franchise businesses, and millions of contractors. The legislation reaffirms an employer must have “actual, direct and immediate” control over an employee to be considered a joint employer – the same standard that was in place for decades before the board’s extreme decision.

“This unelected group of presidential appointees continues to impose rules and regulations that negatively impact American jobs and workers," said Senator Perdue. "As a business guy, I know this type of overregulation dramatically changes how small businesses operate and cripples our economy. I have co-sponsored legislation to rein in this NLRB ruling and preserve the current joint-employer relationship.”

For approximately 40 years, federal labor policies held that two separate employers are “joint employers” if both employers have direct and immediate control over employment terms and working conditions, such as being responsible for tasks like hiring and firing, setting work hours, issuing direction to employees, determining compensation and handling day to day record keeping.

The National Labor Relations Board (NLRB) has determined that merely “indirect control” or even “unexercised potential” to control working conditions will now make two separate employers joint employers. This new standard will be applied retroactively. This determination, or regulation, means that in many more cases multiple employers will have to jointly negotiate working conditions with unions and share liability for labor law violations. As a result, franchisors will exert greater control over franchisees, discouraging aspiring small business owners from entering the business altogether.

Georgia’s senior Senator and Chairman of the Senate HELP Subcommittee on Employment and Workplace Safety, Johnny Isakson, also co-sponsored this legislation. To view a list of co-sponsors of the Protecting Local Business Opportunity Act and the text of the bill, click here