The joint employer rule is back in play after the President followed through on his promise to overturn the Congressional vote, citing bargaining protections
By Joanna Fantozzi | May 03, 2024
The National Labor Relations Board-created joint employer rule is back on the table after President Biden vetoed the Congressionally-approved House Joint Resolution 98 , which effectively overturned the joint employer rule that would make franchisees and franchisors equally liable for labor goings-on.
“The NLRB’s rule would prevent companies from evading their bargaining obligations or liability when they control a worker’s working condition — even if they reserve such control or exercise it indirectly through a subcontractor or other intermediary,” President Biden said in a message to Congress regarding the veto action. “If multiple companies control the terms and conditions of employment, then the right to organize is rendered futile whenever the workers cannot bargain collectively with each of those employers.”
“The House and the Senate came together to pass a resolution that supported small business restaurant owners across the country, so it’s disappointing that the president chose National Small Business Week to veto it,” Sean Kennedy, executive vice president of public affairs for the National Restaurant Association, said in a statement. “A recent court decision rolling the Joint Employer Standard back to the 2020 rule means that today’s action won’t negatively impact restaurant owners, but there’s still uncertainty every day that another wrenching change to the Standard is just around the corner.”
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