Republican Bill Targets Federal Labor Board Ruling

Earlier this month, Senator Lamar Alexander (R-TN) and Representative John Kline (R-MN) introduced the Protecting Local Business Opportunity Act, S 2015 and HR 3459. The bill is a direct response to the recent ruling by the National Labor Relations Board (NLRB) on the joint employer standard in the Browning Ferris case. In the bill, a company would not be responsible for the labor violations committed by a contractor or business partner of that company and also provide clarification of direct and indirect employers. 

The NLRB decision in the Browning Ferris case was determined in August when the board ruled (3-2) that a company is responsible for labor violations that its subcontractor commits. The most significant changes in the standard are that companies that have direct or indirect control of its employees are now responsible for labor violations of those workers. Also, a company could be deemed a joint employer if it has the potential to have direct control of the workforce. The Senate bill currently has 36 cosponsors and the House bill has 25.