Megan R. Wilson writes in The Hill about a National Labor Relations Board (NLRB) decision that will negatively impact workers, unions, and small businesses:
The National Labor Relations Board (NLRB) on Monday vacated a decision that made it harder for workers and unions to hold corporations responsible for the actions of their franchises.
The NLRB’s decision follows an inspector general’s report that said William Emanuel — a lawyer appointed to the board last year by President Trump— should have recused himself from the case that overturned the Obama-era rule.
Known as the “joint employer” rule, the NLRB set a standard in 2015 that workers at the contractors or franchisees of large corporations could file lawsuits against or seek collective bargaining agreements with the parent company, despite not being a direct employee.
The NLRB overturned that decision in December, ruling that companies are only joint employers of firms working for them when the parent company has direct control of hiring and working conditions.
“This is a sad day for Main Street small businesses,” said Job Creators Network CEO Alfredo Ortiz. “It’s especially bad for franchisees, most of whom are locally owned and operated small businesses, and it creates massive confusion for job creators everywhere who must now worry about being dragged into labor lawsuits involving someone else’s employees.”
Read the rest of the story here.