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House bill seeking clarity on joint employer standard passes

Joe Mont | November 8, 2017

The House of Representatives, by a vote of 242-181, approved a bill that seeks to overturn a National Labor Relations Board ruling that redefined longstanding policies regarding joint employer status.

The Save Local Business Act was sponsored by Rep. Bradley Byrne (R-Ala.). The legislation now heads to the Senate.

Byrne serves as Chairman of the House Workforce Protections Subcommittee.

The legislation clarifies what constitutes a “joint employer” under federal labor law.

In August 2015, a ruling by the National Labor Relations Board abandoned 30 years of precedent by redefining and expanding the concept of “joint employer.” As a result, any company that relies on other businesses for contract labor, or uses a franchise business model for its operations, has much greater risk for labor conditions at those other businesses, even though the...

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