The standard for determining whether two businesses are “joint employers” has a big impact on independent franchises. In a letter submitted to the U.S. House, NFIB experts explore legislation impacting the franchise model for small businesses and other related labor issues.

Passing the Save Local Business Act would protect independent franchises and subcontractors by narrowing the joint employer definition and making it a law that only owners who exercise direct and immediate control over a business can be labeled as joint employers.

NFIB challenged a rule that was struck down from the National Labor Relations Board (NLRB) to update the Joint Employer rule. It would have expanded the definition of joint employers, taken away control over their business from small franchise business owners, and saddled small businesses with significant compliance costs.

NFIB’s letter and policy paper explore several harmful labor bills under consideration that would have detrimental effects on the health of the small business labor market. Congress must take action to pass pro-small business legislation to protect the rights of small businesses nationwide.

Take Action: Urge Congress to stop one-size-fits-all mandates on small business!