Job Creators Network Foundation Submits Comments to National Labor Relations Board on Joint-Employer Rule

Washington, DC (December 8, 2022) — Yesterday, the Job Creators Network Foundation submit comments to the National Labor Relations Board (NLRB) for RIN 3142-AA21, the “Standard for Determining Joint-Employer Status.” 

Elaine Parker, president of the Job Creators Network Foundation, released the following statement:

“A majority of Americans probably understand more about NLRB’s current joint-employer rule then even they know they do. Anyone who has worked at a franchise like Starbucks or McDonald’s knows that when you need to take a sick day or adjust your schedule you don’t call up the corporate office, you speak to the store manager. Even those who have never worked at a franchise surely understand this concept. This is exactly why NLRB’s new proposed joint-employer rule makes no sense. The new rule threatens to make employees of companies in virtually any business-to-business relationship employees of both businesses and destroy the franchising and contracting business models that America, and even world economies, rely upon. 

“The reason this new rule is so disastrous is actually simpler than you’d expect. Joint employer means joint liability. Under the NLRB’s proposed rule franchisors and contractors could be responsible for the hundreds of daily decisions made by their franchisees and sub-contractors. This opens up franchisors and contractors to a whole world of potential lawsuits. While many businesses would need to become more hands-on in their individual franchises to prevent lawsuits, the more likely outcome is that bigger businesses will just cancel their contracts with small firms in an attempt to limit liability. Franchises have long been a way for budding entrepreneurs to achieve the American dream, this rule change would take that away. NLRB should abandon this new, and poorly thought out, rule and reinstate the 2020 Final Rule. The 2020 rule was clearer and more logical. But the NLRB never gave it a chance to work.”

You can read JCNF’s full comments here.