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Joint Employer Legislation Passes Out of Committee

Posted in: Capital Watch

Last week, the Committee on Education and the Workforce approved the Save Local Business Act (H.R. 3441) by a vote of 23 to 17. The bill clarifies what constitutes a “joint employer,” which was made ambiguous by the National Labor Relations Board (NLRB) under the Browning Ferris decision. By virtue of the new indirect and potential control standard, contractors could be liable for another company’s employees for which they have no control over. The legislation returns what it means to be a joint employer under an immediate and direct control standard, which had been in place for decades.

You can read IEC’s letter of support by clicking here.