Lawmakers have introduced identical legislation in both chambers of Congress to overturn a landmark decision by the National Labor Relations Board intended to broaden joint employer liability. By including employers who may only indirectly affect employees’ terms and conditions of employment, or have the right to affect such terms and conditions, the controversial Board decision has swept many more businesses under the “joint employer” umbrella and increased labor union bargaining power.
Sen. Lamar Alexander, R-Tenn., alleged Wednesday that the National Labor Relations Board and the Labor Department’s Occupational Health and Safety Administration were coordinating in a controversial move to change corporate liability laws. The change would redefine the legal definition of “joint employer,” making companies responsible for workplace violations at other businesses, such as franchisees and subcontractors.
In recent months, the board charged with conducting union elections and enforcing fair labor practices has ruled that companies must hand employee contact information over to organizers, allow workers to use company e-mail systems for union business and compressed the amount of time between initial efforts and votes on representation. It has also ruled that existing unions can organize their employers’ subcontractors.
“We are disappointed but unsurprised that a partisan NLRB issued a partisan decision at the behest of union bosses. The captured agency has done all it can do to meet the demands of union bosses despite the consequences for employees and employers, however this last decision will be particularly tough for small businesses, entrepreneurs, their employees and our economy.”