U.S. Rep. Grothman: Helps advance bill to roll back joint-employer standard

Contact: Bernadette Green, (202) 225-2476

(Washington, D.C.) – Congressman Glenn Grothman (R-Glenbeulah) today voted to advance the Save Local Business Act (H.R. 3441), of which he is a co-sponsor, out of the House Education and the Workforce Committee. The bill will now continue the process towards a vote on the floor of the U.S. House of Representatives.

H.R. 3441 rolls back the expanded definition of the current joint-employer standard to define joint employers as only those who have “actual, direct and immediate” control over employees.

The current National Labor Relations Board (NLRB) expanded standard that was implemented in 2015 under the Obama administration defines joint employers as those who have direct or indirect control over employees. For example, the expanded standard allows franchisors to control and heavily monitor franchisees in areas like hiring, firing and other day-to-day operations, which creates unnecessary burdens for franchisees.

“Government has been waging a war on small business, the backbone of America,” said Grothman. “These businesses should feel that they – not overreaching government agencies and federal judges – are in control of their own employer-employee relations. On behalf of small businesses and franchisee owners in Wisconsin and across the country, I’m glad we’re working towards that being a reality once again.”

Grothman questioned business owners and employment lawyers about the need to roll back the expanded joint-employer standard during a recent hearing.

The Save Local Business Act passed out of the Education and the Workforce Committee was approved by a vote of 23-17.

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