Coalition supports modifying NLRB decision

WASHINGTON (Sept. 14, 2015) — A new small business coalition has endorsed legislation that would modify a recent decision from the National Labor Relations Board (NLRB) that it says could destroy its members' businesses.

The Aug. 27 NLRB decision, involving Browning Ferris Industries and its subcontractor Leadpoint Business Services, designated nameplate companies as joint employers with their franchisees and subcontractors for the purposes of dealing with unions.

Franchise companies and their associations denounced the Browning Ferris decision, saying it could lead franchisors to exert control over their franchisees or even end franchise arrangements altogether.

The Protecting Local Business Opportunity Act was introduced in the Senate by Sens. Lamar Alexander, R-Tenn., and Johnny Isaakson, R-Ga., and in the House of Representatives by Reps. John Kline, R-Minn., and Phil Roe, R-Tenn.

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Less than two pages in length, the bill amends NLRB regulations to state that two or more employers may be considered joint employers “only if each shares and exercises control over essential terms and conditions of employment and such control over these matters is actual, direct, and immediate.”

The Coalition to Save Local Businesses — an alliance of 25 business association and hundreds of individual small business owners — praised the legislators for introducing the joint employer bill.

“Following the NLRB's Browning Ferris decision, local business owners need champions in Congress to defend them and their livelihoods,” said Michael Layman, the coalition's executive director.

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The National Retail Federation (NRF), a member of the coalition, issued a separate release stating that passage of the Protecting Local Business Opportunity Act is a necessity for American business.

“The board's decision has significant negative implications for essentially any and every type of business-to-business relationship, and will undermine job creation and small business growth across America,” said David French, NRF senior vice president for government relations.

Besides the NRF, members of the Coalition to Save Local Businesses include the International Franchise Association, the National Federation of Independent Business, the U.S. Chamber of Commerce and the National Association of Manufacturers.

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