Washington D.C. – Today, the Job Creators Network called on the U.S. Senate to take up the Save Local Business Act, passed by the House of Representatives last November, which would formulate into law the traditional employment standard of direct control, and protect millions of American small business entrepreneurs who depend on franchising and contracting for their success.
Under the previous presidential administration, the NLRB expanded the employment standard under its Browning-Ferris decision to include businesses that have mere indirect control over employees. This decision threatened to significantly disrupt the franchise model, which millions of Americans – especially minorities, which often locate in minority neighborhoods and hire minority employees – have used as their ticket to the middle class. This is because it would have made franchisors jointly liable for the employment decisions made by their franchisees, which are independent small businesses. The NLRB overturned this ruling in a 3-2 decision last year, reverting to the previous standard.
JCN has been very involved in this fight from the beginning, producing videos, op-eds, and blog posts educating the public about the importance of reversing the Browning-Ferris decision. JCN held a rally in front of the NLRB offices, and its members were quoted widely in the media opposing it. JCN member and founder and CEO of Camp Bow Wow wrote numerous op-eds and appeared in commercials and print ads explaining the importance of the franchise model and how the NLRB Browning-Ferris decision threatened it. Watch highlights from JCN’s NLRB campaign here.
JCN President and CEO Alfredo Ortiz made the following statement:
The U.S. Senate must follow in the House of Representative’s footsteps and pass the Save Local Business Act, which would make the traditional employment standard that employers have relied on for decades more permanent. While last year’s NLRB decision to overturn the Obama-era “joint employer” mandate was a major victory for American small businesses and the people they employ, this achievement may turn out to be short-lived if future activists are appointed to the NLRB. To truly keep the time-tested franchise pathway to the middle class open for hardworking entrepreneurs across the country, Congress must present President Trump with the Save Local Business Act bill to be signed into law.