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house Bill H.R. 3441

"Save Local Business Act": Changing Federal Employment Regulations of Companies That Have Franchises

Argument in favor

The NLRB’s recent decision regarding the definition of a “joint employer” for regulatory purposes burdens small businesses and franchisees. This bill would enact a more sensible standard that only considers a person or entity a joint employer if they directly control an employee’s work terms.

Matthew's Opinion
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11/07/2017
While I appreciate the concern and desire to protect workers, the NLRB ruling would seem to over reach their authority and results in unnecessary ambiguity over what should be a straight forward question of who actually employees the worker. The NLRB ruling seems to have extended corporate liability to bigger pocket organizations that do business with smaller corporations, without really changing employee protections, which are still safeguarded by existing legislation. Congress should clarify this issue and restore a common sense definition of employer - employee.
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operaman's Opinion
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11/07/2017
Since this involved the NLRB, then yes. Anything to counter this Socialist Board is a step toward freedom and the shaking off of Obama’s dust of his presidency.
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Harry's Opinion
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11/07/2017
If you can not control or have ability to direct a person's work, they are not your employee.
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Argument opposed

This bill would enable unscrupulous employers to skirt vital legal protections for workers and minimize their liability, while leaving employees with no recourse for the damages. The current joint employer standard should remain in place.

Mark's Opinion
···
11/07/2017
The United States became the most powerful country in the world on the back of a strong middle class. Removing worker rights is not the way to improve our country, neither is reducing taxes for Donald Trump and his friends. The GOP seems to think they are only accountable to CEOs and Oligarchs. Anyone in favor of this bill or the new tax plan ought to be ashamed of themselves.
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John's Opinion
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11/07/2017
Amazing how Republicans can focus on items that compromise American Workers while ignoring treason at their Highest Levels...Great Job!
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JayOxidative's Opinion
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11/07/2017
This is another pro-business, and therefore anti-worker, attack by the Republicans. Strengthen worker rights and our Unions, not erode them.
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bill Progress


  • Not enacted
    The President has not signed this bill
  • The senate has not voted
  • The house Passed November 7th, 2017
    Roll Call Vote 242 Yea / 181 Nay
      house Committees
      Committee on Education and Labor
      Health, Employment, Labor, and Pensions
      Workforce Protections
    IntroducedJuly 27th, 2017

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What is House Bill H.R. 3441?

This bill — known as the Save Local Business Act — would amend the National Labor Relations Act to specify that a person can only be considered a “joint employer” if they exercise actual, direct, and immediate control over employees. In effect, the bill would negate a 2015 ruling by the National Labor Relations Board (NLRB) which held that a joint employer relationship could be established when an employer exercises control over employment matters indirectly or if they have reserved such control by contract, such as a parent corporation over its franchisees.

Impact

Employees; joint employers; and the NLRB.

Cost of House Bill H.R. 3441

$0.00
The CBO estimates that enacting this bill would have no impact on federal or state agencies.

More Information

In-DepthSponsoring Rep. Braley Byrne (R-AL) introduced this bill to rollback the NLRB’s joint employer standard to only apply to employers that exercise significant control over the terms and conditions of workers’ employment:

“Federal labor policies should be focused on benefiting workers and helping small businesses grow instead of creating barriers that limit opportunity. Also important, Congress – not unelected federal bureaucrats – should set our nation’s labor policies through statute instead of executive fiat. Under this bipartisan legislation, workers, and the businesses they work for, will be given much needed clarity and certainty. I am especially pleased our legislation has earned support from both sides of the aisle, and I am committed to continuing to build momentum as the bill moves through the legislative process.”

Lead cosponsor Rep. Henry Cuellar (D-TX) added:

“Owning and maintaining a small business has been part of the American dream for generations. We must ensure that our small businesses and franchises receive fair treatment from the government, and not confusion and arbitrary regulations that harm them. I have heard from small business owners throughout my district and the country, and it is clear that the NLRB’s joint employer decision was a major threat to the life of the franchise industry and the dream of business ownership for millions of Americans. The Save Local Business Act will provide our nation’s small and franchise businesses the certainty necessary to grow and invest in the future. I encourage my colleagues from both parties to support local businesses by supporting this legislation and restore the traditional joint employer standard as the law of the land.”

House Democrats on the House Education and Workforce Committee opposed this bill’s passage in committee on the grounds that it “enables unscrupulous employers to avoid their legal responsibilities… while denying employees recourse for violations of law and inflicting collateral damage to adversely impacted businesses.” They added:

“The Save Local Business Act dismantles longstanding legal protections for employees under the National Labor Relations Act and the Fair Labor Standards Act. It does so by allowing employers who jointly determine working conditions to evade responsibility for collective bargaining, and to avoid liability for wage theft, child labor, and equal pay violations committed by subcontractors and intermediaries over which they exercise control. Despite the bill’s pro-business title, [it] disadvantages franchisees by leaving them on the hook for decisions directed by their franchisors.”

This legislation passed the Education and Workforce Committee on a 23-17 vote and has the support of 123 cosponsors, including 120 Republicans and three Democrats.


Of NoteThis bill was introduced in response to the NLRB’s 3-2 decision in Browning-Ferris Industries of California Inc. that companies sharing only “indirect” or “potential” control over another’s workforce may be considered joint employers.


Media:

Summary by Eric Revell

(Photo Credit: PeopleImages / iStock)

AKA

Save Local Business Act

Official Title

To clarify the treatment of two or more employers as joint employers under the National Labor Relations Act and the Fair Labor Standards Act of 1938.

    While I appreciate the concern and desire to protect workers, the NLRB ruling would seem to over reach their authority and results in unnecessary ambiguity over what should be a straight forward question of who actually employees the worker. The NLRB ruling seems to have extended corporate liability to bigger pocket organizations that do business with smaller corporations, without really changing employee protections, which are still safeguarded by existing legislation. Congress should clarify this issue and restore a common sense definition of employer - employee.
    Like (37)
    Follow
    Share
    The United States became the most powerful country in the world on the back of a strong middle class. Removing worker rights is not the way to improve our country, neither is reducing taxes for Donald Trump and his friends. The GOP seems to think they are only accountable to CEOs and Oligarchs. Anyone in favor of this bill or the new tax plan ought to be ashamed of themselves.
    Like (141)
    Follow
    Share
    Amazing how Republicans can focus on items that compromise American Workers while ignoring treason at their Highest Levels...Great Job!
    Like (73)
    Follow
    Share
    This is another pro-business, and therefore anti-worker, attack by the Republicans. Strengthen worker rights and our Unions, not erode them.
    Like (57)
    Follow
    Share
    Another Conservative tactic to further oppress the employees, the Citizens and to exploit the disadvantaged. Profiteering is all that matters to this group.
    Like (33)
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    Since this involved the NLRB, then yes. Anything to counter this Socialist Board is a step toward freedom and the shaking off of Obama’s dust of his presidency.
    Like (20)
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    Share
    Support employee rights.
    Like (20)
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    For all you working class who voted republican. Here is another one in the shorts for you. I hope some day you realize unless you are the top 1 percent you are being used
    Like (16)
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    What a sneaky name for a bill that really aims to limit worker rights. Do not pass!
    Like (14)
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    Leave the unions and NLRB alone! Everyone knows you are totally on corporate and business’ side and will help them rather than average Americans! Do ANY of you care? Hint: Elections coming up!
    Like (9)
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    Coffman, I swear if you keep voting with Trump you’ll lose your seat.
    Like (9)
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    I’m concerned this is only an attempt to protect the corporate franchiser from liability. Since franchisers train franchisees in every aspect of their business and establish best practices, I believe they should continue to shoulder some of the responsibility for the actions of their franchisees. I’m leary of this apparent attempt to escape culpability.
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    The NLRB formulated this rule to keep the mega franchisers - who make the guidelines for employment for the franchisees - from avoiding responsibilities like worker safety, rotating shifts, benefits, minimum pay and liability for their franchises. Another bad deal for employees and actually for small business franchisees.
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    If you can not control or have ability to direct a person's work, they are not your employee.
    Like (8)
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    What this bill says it does and what it actually does are two different things. This doesn't save local businesses, quite the contrary; this exempts big businesses and businesses that use temp agencies from worker protections and as a result will actually harm local businesses by holding them liable for actions performed by their franchisors. The joint employer rule as it exists today makes sense, and should not be repealed. I've worked as a subcontractor/temp and if the company I was doing work for was exempt from labor laws they could have attempted to abuse their position and under this bill get away with it without any recourse. That is unacceptable, and I do not approve of this bill.
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    Come on. Seriously? Regulations are put in place because someone did something wrong in the first place. Regulations do not happen out of thin air. They happen because someone has exploited someone else. This will allow only the rich to be above the law when it comes to employees.
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    This to me after reading the pros & cons of this bill; a change is necessary. I ask the democratic party if your so worried about unscrupulous employers, why not go after them? Knowing that there is some employers who will take advantage of employees is it not part of your requirement to do something about it? If you give me and others the normal political BS, answer. Then maybe its time to reconsider your position as a representative for the betterment of the people of this country.
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    Passing this bill Will allow businesses to take advantage of workers. Why can’t Congress do something for workers for a change instead of always doing things to improve things for businesses and to give them the control?
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    This is another bill that erodes workers rights and bolsters corporate gains.its been around since the 1939's for a reason, because it's the way things should be. Vote no.
    Like (4)
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    Absolutely NO to H.R. 3441. If an employer is doing the right thing they have nothing to worry about. It’s only when an employer is trying to take advantage of and/or abuse its employees that they are concerned. Simple Solution: Do what is right.
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