JOBS REPORT: NLRB bureaucratic overreach will hold back hiring


March 6, 2015

ATLANTA, GA – The chief executives of Job Creators Network predicted modest unemployment drops reported in the February jobs report released this morning will be threatened if the National Labor Relations Board’s war against franchised small businesses isn’t reined in. A new proposal from the general counsel of the NLRB would upend four decades of labor law: Franchisees stand to lose a great deal of autonomy in how they run their business and franchisors could be held liable for the day-to-day employment decisions of the franchisee.  
 
“Franchisees aren’t the big corporations whose name we see on the signs,” said Alfredo Ortiz, CEO of Job Creators Network. “They are examples of the small business people in every community who create most new jobs.”
 
The NLRB’s general counsel has recommended franchisors be considered joint employers with their franchisees. If the NLRB is successful, it will turn franchising relationships upside down and hurt this successful business model—one that has been particularly prosperous for minorities and women. Nearly 20 percent of franchises are owned by women and minorities.  
 
“Small business franchisees are responsible for creating nearly 770,000 businesses and more than 18 million direct and indirect jobs,” said Ortiz. “If we want employment reports that make everyone cheer, then NLRB bureaucrats need to let these job creators continue building their businesses.”
 
This morning’s employment report from the US Bureau of Labor Statistics showed 295,000 new jobs created during February, and an unemployment rate of 5.5 percent. 
 
‘Defend Main Street’ (DefendMainStreet.com) is a public awareness campaign aimed at defending small businesses and the franchise business model.