U.S. House Passes Joint Employer Bill that Restores Former Standard

The U.S. House, by a vote of 242-181, passed H.R. 3441, the Save Local Business Act, which fixes the joint employer standard upended by the 2015 Browning Ferris Industries case, in which the National Labor Relations Board (NLRB) overturned 30 years of case precedent.

Previously, businesses could meet the definition of an “employer” if they had “direct and immediate” control over another’s work. Now, a business owner who has “potential” or even “reserved control” over the practices of another business and its employees could be considered a “joint employer.”

H.R. 3441 will restore the old standard by amending the National Labor Relations Act to define that a person may be considered a joint employer in relation to an employee only if such person directly, actually, and immediately exercises significant control over the essential terms and conditions of employment.

The measure goes to the Senate. 11/13/2017

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