The NLRB has ended its efforts to eliminate an Appeals Court injunction over the NSBA-opposed joint-employer rule.
Last week, the National Labor Relations Board (NLRB) withdrew a federal appeal in the 5th Circuit to end an injunction over its latest version of the joint-employer rule.
Earlier this year, the NLRB published final rule changes for the joint-employer standard, a misguided proposal which would essentially make larger companies and franchisors responsible and liable for the employment practices of their franchisees, suppliers, vendors, contractors, and subcontractors.
“I am relieved that our voice was heard and this rule will not be coming to fruition – this is a major win for America’s small businesses,” stated NSBA President and CEO Todd McCracken. “From the beginning, NSBA was outspoken in our opposition to this innovation-killing rule. It would have caused a massive scaling-back by larger companies in their work with small businesses as suppliers, they would have looked to take them over and bring them “in-house”, leading to fewer start-ups, lost innovation, higher costs, and a less vibrant entrepreneurial economy.”
The U.S. Chamber of Commerce filed suit over the final rule, which, with support from NSBA, resulted in an injunction against certain effects yielded by these changes. The rule received widespread push-back and ultimately, last week’s decision to drop their appeal in the lawsuit means the injunction against the rule will stand and it will not go into effect.
While this is the end of the road for this particular proposal from NLRB, NSBA will continue to be vigilant and stand up for common-sense rules that embrace fairness and flexibility for small-business owners.
Follow us as we continue tracking changes to the joint-employer standard from the NLRB, including responses from the court room to Capitol Hill.
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