The ABC-opposed and House-passed PRO Act (H.R. 842/S. 420) includes a provision that dramatically expands the joint-employer standard under the NLRA, and the NLRB intents to issue a new proposed rulemaking on the joint-employer standard in 2022.
In July 2021, the DOL under President Biden issued a final rule to rescind the Trump-era joint employer final rule under the FLSA. ABC strongly supported the 2020 joint employer final rule; however, shortly after its issuance, 18 blue states sued the DOL under President Trump in federal court to strike it down and a judge ruled that parts of the rule were illegal. A business coalition that includes ABC intervened in the case, in part to defend the construction industry against unwarranted attacks on the industry’s long-established methods of doing business by the state plaintiffs.
ABC is disappointed that the Biden DOL rescinded the 2020 joint employer final rule. ABC supported the prior final rule because it promised to bring additional clarity to a confusing area of the law, help alleviate unnecessary barriers to and burdens on contractor and subcontractor relationships throughout the construction industry, reduce needless litigation and encourage innovation in the economy. ABC supports the Save Local Business Act (H.R. 3185/S. 3465), which passed the House in 2017 and would codify a “direct” control joint employer standard in both the FLSA and NLRA. Visit freeenterprisealliance.org/proact to learn more and take action.