Peace Garden News

BISMARCK — U.S. Senator Kevin Cramer (R-ND) joined Senator Roger Marshall, M.D. (R-KS) in introducing the Save Local Business Act, bicameral legislation to codify federal standards for joint employers.

The U.S. Department of Labor (DOL) has initiated rulemaking processes on joint employer policies three times since 2015, most recently in September 2022. Frequent changes have resulted in legal confusion for the business community. The Save Local Business Act restores a commonsense definition of employer to provide certainty and stability for workers and employers.

“Local businesses in North Dakota and across the country are the backbone of our economy. Yet, for nearly a decade, employers have been subjected to regulatory ping pong of ever-changing employment rules and definitions,” said Senator Cramer. “Our bill ends this nonsense by defining what a joint employer is once and for all.”

“You can’t focus on running a business if the federal government keeps changing the rules. The Save Local Business Act provides long-overdue clarity and consistency that will protect our nation’s small businesses,” said Senator Marshall. “The Biden Administration’s Labor Department has relied on complicated court rulings to handle joint employers instead of providing clear guidance to the business community. In a time of economic hardship, we should be doing all that we can to help our nation's small businesses, not let the heavy hand of government regulations run amok.”

Visit the corresponding links to read letters of support from the Business Coalition and the Taxpayer Coalition.

Joining Senators Cramer and Marshall are Senators John Barrasso (R-WY), Mike Braun (R-IN), Bill Cassidy (R-LA), Bill Hagerty (R-TN), Cynthia Lummis (R-WY), Marco Rubio (R-FL), and Roger Wicker (R-MS). Congressman James Comer (R-KY) introduced the companion bill in the House of Representatives.

Click here for bill text.

Background:

In 2015, the National Labor Relations Board (NLRB) overruled longstanding precedent and significantly expanded the definition of joint employer under the National Labor Relations Act (NLRA).  That same year, the DOL also issued guidance expanding the joint employer standard under the Fair Labor Standards Act (FLSA). Through these actions, the Obama Administration and the NLRB discarded settled labor policy and blurred the lines of responsibility for decisions affecting the daily operations of local businesses across the country.

The Biden administration DOL is now looking to restore this harmful framework through a final rulemaking. Its latest proposed definition would allow two or more employers to be considered joint if they forge a business agreement which “indirectly” or “potentially” impacts their employees’ day-to-day responsibilities and working environment. Per the American Action Forum, if made effective, the proposal could destroy 1.7 million jobs.

Original source can be found here.