Today, we applaud the House Education and Workforce Subcommittee Chairman Bradley Byrne (R-AL), along with Chairwoman Virginia Foxx (R-NC) and Congressmen Henry Cuellar (D-TX) and Luis Correa (D-CA) for introducing the Save Local Business Act, which undoes the National Labor Relations Board’s (NLRB) 2015 unfavorable case decision in Browning-Ferris Industries (BFI). The Board, in BFI, overturned decades of case precedent on what constitutes a joint employer and significantly expanded the joint-employer standard to employers who exercise “indirect, potential or unexercised control” over another entity, overturning the old standard of “direct control.” The repercussion of this new standard has resulted in nearly two years of uncertainty among manufacturers as to whether or not their business relationships were at risk to new liabilities. The Save Local Business Act restores the 1984 standard and codifies it into the National Labor Relations Act and the Fair Labor Standards Act to prevent any future reversals.
The BFI case is just another example of uncertainty, which is unfortunately commonplace within today’s labor policy. Not only have stable and well-established policies been upset by new regulations, but the NLRB has also taken it upon itself to overturn decades of labor law precedent without any provocation or change that would necessitate it. Manufacturers are left, once again, in a state of the unknown, and rather than running their businesses and creating more jobs, employers are left with having to shift resources to deciphering the impact of these new policies.
As evidenced by the bipartisan bill introduced today, this is not a Republican or Democrat issue, but rather an employer issue that spans across the country to all industry sectors and impacts companies of all sizes. We thank Chairman Byrne and Chairwoman Foxx for their leadership on this and other labor issues and for their continued commitment to U.S. business owners to fix the problems created by misguided labor policies of the past eight years.