Committee Holds Hearing on Joint Employer Standard

On July 12, the Committee on Education and the Workforce held a hearing on the National Labor Relations Board’s (NLRB) revised Joint Employer standard. During the hearing, witnesses testified on how the broader standard could negatively impact their ability to grow their businesses and create jobs. The following day, the subcommittee that handles Labor HHS appropriations legislation passed its FY2018 funding bill that included language preventing funds from being used by the federal government to enforce the joint employer standard. 

The new standard, enacted in 2015 via a ruling in the Browning-Ferris case, deems that one company could be considered jointly employed if it has indirect or potential control over the terms and conditions of another company’s employees. The prior standard, which IEC supports, required direct and immediate control. IEC submitted a statement for the record for the hearing and will continue to work with the committee and Congress on legislation to amend the new standard.