On January 12, the House Rules Committee advanced the Save Local Business Act, which would clarify that an entity is only a joint employer under the FLSA and NLRA if it directly and immediately exercises meaningful control over workers’ essential terms and conditions of employment. CDW and 74 other organizations sent a letter to the House of Representatives urging the chamber to quickly pass the bill.

The following can be attributed to CDW Chair Kristen Swearingen:

“The employer community and American workforce need predictability and stability in federal labor and employment policy, but unfortunately, with every change of administration, the issue of joint employer liability swings drastically. Democratic administrations have attempted to expand the standard beyond what is actually appropriate or practicable. This volatility has threatened proven business models like franchising and jeopardized small businesses and entrepreneurs across the country.

“The Save Local Business Act will restore much-needed clarity to federal labor and employment policy. It will ensure the appropriate entities are at the bargaining table and held responsible for violations committed against workers while shielding job-creators from inappropriate liability for other entities’ actions. CDW urges the House to quickly pass this important bill.”