Washington DC (February 25, 2020) — The Job Creators Network (JCN) commends a rule the National Labor Relations Board (NLRB) will issue on Wednesday to return to the old standard of what constitutes an employer. This definition, which reverses the Obama-era joint employer standard, will protect small business owners.
Alfredo Ortiz, president and CEO of the Job Creators Network, released the following statement:
“The NLRB has reversed one of the Obama administration’s most anti-small business policies by returning the standard for what constitutes an employer back to the traditional definition. Obama’s joint employer standard threatened to make contractors and franchisors liable for the thousands of daily labor-related decisions made by their subcontractors and franchisees. This broad employer standard would have reduced small business opportunities for minorities and new entrepreneurs. By returning the definition of an employer back to those who ‘possess and exercise substantial, direct and immediate control’ over employees, the NLRB protects the enormously successful American franchise system, which has been a ticket to the middle class for generations and has provided countless young jobseekers with early-career work experience. This decision is just the latest Obama-era job-killing policy that the Trump administration has overturned, and it marks yet another victory for small businesses and the American economy. Congress should now entrench it into law, so future administrations don’t reverse it again.”