House Passes Joint Employer Legislation

On Tuesday, the United States House of Representatives passed the Save Local Business Act (H.R. 3441) by a vote of 242 to 181. 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. The legislation now moves to the Senate where its outlook is unclear.