Press ReleaseSeptember 13, 2018

Job Creators Network Applauds NLRB Joint Employer Rule

New rule restores proper definition of employee, says small business group

Washington, DC (September 13, 2018– A new rule proposed by the National Labor Relations Board (NLRB) on the Joint Employer standard restores the appropriate definition of employee, said the Job Creators Network today.

“We applaud the NLRB chairman for working to clear up the confusion after the issue was turned upside earlier this year. The proposed rule should be adopted as soon as possible to protect small businesses from lawsuits brought by workers over whom they have no direct control,” said JCN President and CEO Alfredo Ortiz.

Last year, the NLRB issued a rule reversing an Obama-era definition, under which employers could be held liable for labor law violations committed by other businesses with whom they have a legal relationship, such as franchise businesses. That decision was abruptly reversed, however, because one of the members was deemed ineligible to participate.The ruled proposed today would clear up the confusion.

“The Obama rule threatened the franchise model, but many more businesses were potentially affected,” said Ortiz. “Businesses that subcontract with other firms could be punished for violations committed by the subcontractors. That’s very dangerous and completely unfair,” said Ortiz.

“This new rule establishes that an employee is a person over whom a business has substantial and direct control. That’s the common-sense definition, and that should be the legal standard.”