Job Creators Network and Former Labor Secretary Alex Acosta Comment on New NLRB Joint Employer Rule

In response to NLRB’s final joint employer rule released today, Alfredo Ortiz, president and CEO of Job Creators Network, released the following statement:

“With this joint employer rule, NLRB effectively imposes joint employer status on every contracting relationship, and America’s small businesses are the biggest losers. NLRB’s nebulous standard threatens the viability of the millions of small businesses that operate a franchise and the millions more small businesses that outsource to another business certain work, such as information technology or even janitorial or landscaping services. The joint employer rule especially threatens the American franchise system, which has long been a ticket to the middle class for anyone willing to put in the hard work. Concerned about lawsuits, franchisors will no longer be willing to franchise to unproven upstarts under this new standard.”

In a new episode of the Main Street Matters podcast, Alex Acosta, the 27th United States Secretary of Labor and board member at Job Creators Network, said:

“Joint employer undermines the whole franchise system. What this Administration is trying to do systematically is use different rules at the Department of Labor and elsewhere to regulate in a way that Congress would never pass.”