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Joint Employer

Status

On Nov. 9,  ABC joined the U.S. Chamber of Commerce and a coalition of business groups in filing a lawsuit challenging the National Labor Relations Board’s Joint Employer final rule for violating the National Labor Relations Act and for acting arbitrarily and capriciously in violation of the Administrative Procedure Act. Effective Feb. 26, 2024, the final rule takes an ax to the ABC-supported 2020 NLRB joint employer final rule, which provided clear criteria for companies to apply when determining status.

 The NLRB’s new joint employer final rule will disrupt long-established, efficient operational processes followed by construction service providers that work together to build America. As a result of the confusion and policy whiplash caused by this overbroad standard, contractors will be vulnerable to increased liability and risk, making them less likely to hire subcontractors, most of which are small businesses.

On Nov. 7, U.S. Reps. John James, R-Mich., Chairwoman of the House Education and the Workforce Committee Virginia Foxx, R-N.C., and Speaker Mike Johnson, R-La., joined U.S. Sens. Joe Manchin, D-W.Va., ranking member of the Senate Health, Education, Labor and Pensions Committee Bill Cassidy, R-La., and Minority Leader Mitch McConnell, R-Ky., in introducing a Congressional Review Act resolution to overturn the NLRB’s new joint employer final rule. ABC endorsed the CRA.

On Dec. 7, 2022, ABC submitted comments to the NLRB in opposition to the joint employer proposed rule and argued that the rule would greatly expand joint employer liability by trying to make indirect or even just reserved, unexercised control sufficient to trigger joint employer status. This overbroad joint employer standard will have an adverse impact not only on our member contractors but also on the overall economy.

Desired Outcome

ABC supports the CRA to overturn the NLRB’s joint employer final rule.

ABC also supports the Save Local Business Act (H.R. 2826/S. 1261) introduced on April 26 by Sen. Roger Marshall, R-Kan., and Rep. James Comer, R-Ky., to make clear that an employer may be considered a joint employer in relation to an employee only if the employer directly, actually and immediately exercises significant control over the essential terms and conditions of employment. ABC joined a coalition in support of the legislation.

 



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