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Regulation Rollback: NLRB’s Joint Employer Rule

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Old 11.06.17, 04:46 PM
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Regulation Rollback: NLRB’s Joint Employer Rule

11.06.17 10:26 AM

A classic example of the government harming those they set out to help can be found in the joint employer rule.*The Obama-era rule was intended to keep employers from dodging wage and hour laws. Instead, it ends up creating massive compliance issues and expensive regulations while threatening to upend the franchise business model. Under the rule, parent companies could be held responsible for the labor violations of their contractors and franchises. “Franchise brands would face liability for actions they have no power to detect or prevent,”*according*to James Sherk, a labor expert and previous research fellow at the Heritage Foundation. The Washington Legal Foundation*argued*that theNational Labor Relations Board’s*(NLRB) joint employer ruling of 2015 and 2016 “is so vague that regulated entities cannot confidently predict whether the new standard will result in the doctrine being applied to their future operations.” It created an unnecessary burden on parent companies that operated a franchise model, threatening the businesses and jobs that rely on that system. Fortunately, current Secretary of Labor Alexander Acosta*announced*the withdrawal of the joint employer rule in June of this year. This indicates a shift in priorities at the federal level. That withdrawal, however, “does not change the legal responsibilities of employers […]

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