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As a member of the Save Local Business Coalition, SHRM joined onto a letter urging the Republican and Democratic Senate leaders to pass the Save Local Business Act. The SHRM-supported legislation passed the U.S. House of Representatives on a bipartisan vote back in November.
The legislation would overturn the National Labor Relations Board's (NLRB's) Browning-Ferris Industries (BFI) decision that fundamentally changed the 30-year joint employer standard. Under the BFI decision, the NLRB ruled that a company is considered a joint employer with a subcontractor if it has "indirect" control over the terms and conditions of employment or has the "reserved authority to do so."
The Save Local Business Act defines a company as a "joint employer" with its subcontractor if it "directly, actually and immediately exercises significant control over essential terms and conditions of employment, such as hiring employees, discharging employees, determining individual employee rates of pay and benefits, day-to-day supervision of employees, assigning individual work schedules, positions and tasks or administering employee discipline."
Even though the NLRB recently overturned the BFI decision, the proposed legislation would codify into U.S. law the direct-control standard preventing future boards from imposing their will on the joint-employer definition. SHRM will continue to engage the U.S. Senate and advocate in support of this bipartisan solution.
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