WASHINGTON, DC – Recent legislation introduced by U.S. Representatives Virginia Foxx (R – NC) and Bradley Byrne (R – AL) guarantees a clear definition of who is classified as a ‘joint employer’ and who shall be held liable in the case of an employees’ legal rights.
The Save Local Business Act (H.R. 3441) would finally restore the longstanding standard for joint employer liability and remove the threat to businesses, contractors, and entrepreneurs. In clarifying that two or more employers must have “actual, direct, and immediate” control over employees to be considered joint employers, this bipartisan bill is an important step forward in protecting American jobs and entrepreneurship.
The Center for Innovation and Free Enterprise (CIFE) backs this legislation with an understanding that it is unreasonable to expect businesses to face potential liability from employees with whom they have no direct control over.
“The Save Local Business Act restores a commonsense definition of ‘joint employer’ so as to provide certainty and stability for both employers and employees,” said CIFE President Dee Stewart. “We must restore the federal labor law to be fair and reasonable, as it was prior to the Obama Administration’s joint employer scheme in 2015. This legislation does exactly that.”
“With the bill’s bipartisan support in the form of 29 co-sponsors, CIFE would like to show our strong support in passing the Save Local Business Act.”